Gemfields Resources (LSE: GEM), which only recently re-emerged from a reverse-takeover with assets controlled by Pallinghurst Resources, today announced that it was offering £33 million for Tanzanite One (LSE: TNZ).
Gemfields is offering 45 pence per share for Tanzanite One, who own and operate a Tanzanite precious gemstone mine in Tanzania, and also acquired the Tsavorite Project in 2007.
Gemfields stated that shareholders in Tanzanite One could either elect to take the offer in cash, or receive 1.4 shares in Gemfields for every share they hold in Tanzanite One.
Rebuffing Gemfields advances won’t be easy for Tanzanite One. The company’s shares were trading near record lows before Gemfields and Pallinghurst Resources started accumulating stock at the beginning of this month. Gemfields stated today that between itself, Pallinghurst Resources and irrevocable undertakings it already had 32.6% of the stock under its sway.