Silica Mining Merger: Diatremes Offer for Metallica Minerals

Diatreme Resources Limited (ASX: DRX) has conditionally proposed a takeover bid for Metallica Minerals Limited (ASX: MLM). Metallica shareholders would receive 1.3319 fully paid ordinary shares in Diatreme for each Metallica share, contingent upon ASIC modifications. The offer represents a 22.08% premium to Metallica's last closing price.

Sibelco Asia Pacific Pty Ltd, owning 16.43% of Metallica shares, intends to accept the offer. Diatreme sees the merger as strategically rational, aiming to optimize silica assets in the Cape Flattery region. This consolidation streamlines approvals processes, potentially reducing development risks and enhancing shareholder value. The combined entity could achieve efficiencies in permitting, financing, infrastructure, and operations, leading to increased shareholder value and regional benefits.

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