Mineral explorer Kagara Ltd (ASX:KZL)
has announced it plans to make an off-market $14.2 million takeover bid for North Queensland explorer Copper Strike Ltd (ASX:CSE)
The proposed offer is for 11 cents for every Copper Strike share held, above Copper Stike’s last traded price of 9.5 cents.
Kagara says the acquisition would strengthen its copper portfolio, enabling it to further consolidate its ownership of base metal deposits in far North Queensland.
Adding, that the takeover would allow Kagara to accelerate the development of Copper Strike’s assets and establish another regional source of ore for Kagara’s Mt Garnet and Thalanga treatment facilities.
Kagara moved out of the red in the 2010 financial year to post a profit of $3.66 million.