United States-based Crosshair Exploration & Mining Corporation has launched a $US12.85 million hostile bid to acquire the US uranium developments owned by Perth-based Australian American Mining Corporation.
AusAm sought a trading halt today after it became aware that Crosshair had written directly to its shareholders to outline its proposal.
Its shares last traded at 3.1 cents.
Crosshair said it had written to shareholders because it had yet to make any meaningful engagement with the AusAm board.
AusAm, however, said it had received a non-binding proposal from Crosshair for the purchase of its Apex/Lowboy, Lonestar and Rio Puerco uranium projects in Texas and New Mexico on August 10.
The proposal flagged the $US12.85 million purchase price to be made up of Crosshair shares, valued at the 10 day volume weighted average price immediately prior to the transaction’s closing.
AusAm said it had not yet undertaken due diligence of Crosshair to satisfy itself of the value of its shares.
Crosshair said it had launched the bid for the projects because it had lost confidence in the board of AusAm to capitalise on their exploration and development potential.
Crosshair chairman Mark Morabito said the offer was a potential win-win for both companies.
“Our proposal allows AusAm to immediately benefit from a significant premium in the value of their assets, while allowing Crosshair to accelerate the development of the uranium assets by applying our proven expertise, based here in North America, to advancing the assets,” Mr Morabito said.
“AusAm can either benefit from the upside as we develop the uranium assets, or use the greater financial resources to pursue their other prospective projects.”
