Far East Gold Limited (FEG) has seen a significant development in the ongoing off-market takeover bid by Xingye Gold (Hong Kong) Mining Company Limited, a wholly owned subsidiary of Inner Mongolia Xingye Silver & Tin Mining Co., Ltd. The bidder, currently holding a relevant interest in 33.79% of FEG shares, has issued a Second Supplementary Bidder’s Statement outlining a conditional increase to its offer price and an extension of the offer period. Far East Gold Limited is an ASX-listed exploration company focused on the discovery and development of gold and copper projects in Indonesia.
Under the revised terms, Xingye Gold will increase its cash offer price to $0.15 per FEG Share, provided it obtains relevant interests in more than 50% of all FEG Shares on a fully diluted basis by 7:00 pm (Sydney time) on 21 July 2026. Should this condition be met, the offer will also be declared unconditional. The $0.15 offer represents a substantial premium, including a 54.64% premium to FEG’s closing trading price of $0.097 on 26 May 2026, the day before the initial offer announcement. It also presents a 37.83% premium to the 1-month Volume Weighted Average Price (VWAP) and a 21.38% premium to the 3-month VWAP as of the same date.
The bidder has extended the offer period, allowing the bid to remain open for acceptance until 7:00 pm (Sydney time) on 29 July 2026. However, shareholders are strongly encouraged to accept by the earlier 21 July deadline to potentially secure the higher conditional offer price. Xingye Gold highlighted that its current substantial holding, coupled with its stated intention not to accept or vote its shares into any alternative proposal, makes the emergence of a competing bid highly unlikely.
Xingye Gold further stressed that accepting the offer would allow FEG shareholders to de-risk their investment from various uncertainties associated with Far East Gold’s projects. These include the long-revoked Wonogiri Mining Licence and issues with the Woyla Project’s exploration period, along with concerns regarding FEG’s declining cash balance and managerial practices. The increased offer consideration of approximately $55.30 million is confirmed to be funded by Xingye from its existing cash reserves.
