Determined to become a bigger player in Kalimantan, Indonesia, junior gold explorer International Pursuit (IPJ-T) is attempting a takeover of its partner, Dayak Goldfields (DAYK-C).
Pursuit has offered to acquire all the shares of Dayak that it does not already own by offering one Pursuit share and a quarter of a Pursuit share purchase warrant for every three Dayak shares. One whole warrant will entitle the holder to buy one Pursuit share for $5.50 for one year.
Should Pursuit acquire all of Dayak’s shares, its share capital would increase by 20% through the issuance of 4.9 million additional shares and warrants for 1.2 million shares. Pursuit and Dayak have $24 million and $13.5 million, respectively, in working capital.
Pursuit holds an 18.4% interest in Dayak, with a right of first refusal to back into one Dayak discovery for a 60% interest by providing production financing. Dayak, in turn, holds a 20% free-carried position in all of Pursuit’s ground. The two companies are the largest holders of exploration rights in Kalimantan, with combined holdings of more than 5 million ha.
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