Alliance, Tawana update terms of merger agreement

CATALIST-LISTED Alliance Mineral Assets and Australian-listed Tawana Resources have updated their scheme implementation agreement in relation to their proposed "merger of equals".

Among the amendments are for the provision for the cancellation of A$0.50 Tawana options expiring April 6, 2021 for 354,196 Alliance shares.

In addition, Tawana and the Johannesburg Stock Exchange have determined that Tawana shareholders with a registered address in South Africa will be treated as ineligible shareholders for purposes of the scheme, and will receive the net proceeds from the sale of the Alliance shares which they would have otherwise received - after deducting any applicable brokerage, stamp duty and other selling costs, taxes and charges - in lieu of receiving Alliance shares.

Under the merger, Tawana shareholders will receive 1.1 new Alliance shares for every one Tawana share, and Tawana and Alliance shareholders will collectively hold around 50 per cent interest in the new merged group.

Alliance shares advanced 2.9 per cent, or one Singapore cent to 35.5 Singapore cents as at 11am on Monday.