Far East Gold Ltd (ASX:FEG) has again urged shareholders to take no action in response to an unsolicited off-market takeover bid from Xingye Gold (Hong Kong) Mining Company Ltd, which is seeking to acquire all shares it does not already own for $0.13 per share in cash.
Xingye has dispatched its bidder's statement to shareholders following the launch of the offer on May 27, 2026.
FEG's board reiterated its earlier advice that shareholders should not respond to the offer documentation, complete acceptance forms or take any action until they have received the company's formal response.
According to the board, the takeover approach was made without prior discussions or engagement with the company.
FEG described the offer as "opportunistic in both its timing and its pricing", noting that it expects to provide shareholders with updates on project activities and other near-term catalysts in the coming weeks.
The company stressed that shareholders who ignore correspondence from Xingye will not affect their shareholding position in any way.
To assess the bid, FEG has assembled a team of advisers including Canaccord Genuity (Australia) as strategic and financial adviser and law firm Thomsons Geer as legal adviser.
The company has also appointed Lonergan Edwards & Associates and SRK Consulting as independent experts to undertake valuation and technical assessments of the offer.
What's next?
FEG said its board's formal recommendation on the offer will be outlined in a Target's Statement, which will be released to the ASX and sent to shareholders within the timeframe required under the Corporations Act.
The document will include the findings of the independent experts and other information relevant to shareholders' decision-making process. The board said investors should wait until they have reviewed the Target's Statement and accompanying expert reports before deciding whether to accept or reject the bid.
Far East Gold grows Idenburg resource to 780,000 ounces
It's full steam ahead for FEG at its flagship Idenburg Gold Project in Indonesia, where it recently increased the Inferred JORC Mineral Resource Estimate at its to 7.8 million tonnes grading 3.1 g/t gold for 780,000 ounces, marking a significant uplift from the previous 540,000-ounce estimate.
Chief executive Shane Menere said the update represented a major milestone for the company, highlighting the rapid growth of the resource from zero ounces to 540,000 ounces and now 780,000 ounces. He noted that much of the increase had come from drilling at a single prospect, underscoring the scale and geological continuity of the broader mineralised system.
Menere said the project was reaching a scale that should attract increasing market attention, particularly given that large parts of the project area remain largely unexplored. He added that the company sees substantial scope for further resource growth through ongoing exploration.
Beyond resource expansion, Far East Gold is continuing to advance Idenburg towards development. Recent metallurgical test work has delivered strong gold recoveries using conventional processing methods, providing an important de-risking outcome for the project.
The company has also progressed key permitting activities, including forestry classification approvals in Indonesia, which are expected to support future development plans.
Meanwhile, Far East Gold has commenced a scoping study for the project, with results expected within four to six weeks. The study is anticipated to provide an initial assessment of potential development options and the project's economic outlook.