Anglo Asian Mining Plc (LSE:AAZ, OTC:AGXKF) has confirmed that trading in its shares will resume this morning after a brief suspension prompted by online speculation and an early-stage approach from ACG Metals Ltd (LSE:ACG, OTC:ACGAF).
ACG said yesterday that it is “in early stages of considering making an offer” for the entire share capital of Anglo Asian.
At this point, the company has not committed to making a bid and stressed that “there can be no certainty that an offer for Anglo Asian will ultimately be made.”
Under takeover rules, ACG has until 5pm on 24 December to decide whether to put forward a firm offer or walk away.
Anglo Asian, which produces gold, copper and silver in Azerbaijan and is listed on AIM, saw its shares suspended on Wednesday after what it described as “various speculative comments on investor bulletin boards” and a resulting swing in its share price.
It said it asked for the halt while it made the necessary enquiries to issue an announcement compliant with market rules.
Anglo Asian acknowledged ACG’s statement but noted that the approach is not yet a formal takeover proposal under Rule 2.7 of the Takeover Code.
The company told investors: “There can be no assurance that a definitive agreement for the possible acquisition will be entered into or as to the terms on which any such offer might be made.” It urged shareholders to “take no action at this time.”
Both companies said further updates will be provided when appropriate.
The potential bid comes at a busy moment for the miner. Anglo Asian said it is making “excellent progress” on its plan to grow into a mid-tier copper-focused group. This year it has brought two new sites, the Gilar and Demirli mines, into production “on time and on budget”.
It also highlighted an in-country resource base of more than 400,000 ounces of gold and one million tonnes of copper, which it believes supports future development of two further assets, Xarxar and Garadag.