Zenith Minerals Backs Forrestania Takeover Offer

Zenith Minerals (ASX:ZNC) has reaffirmed its unanimous recommendation for shareholders to accept Forrestania Resources' (ASX:FRS) off-market scrip takeover offer, following Forrestania's acquisition of the Edna May Gold Hub and the successful completion of a AU$310 million capital raising, according to a Wednesday filing with the Australian bourse. The board said the latest developments reinforce the strategic rationale for the merger, while the offer remains unchanged at one new Forrestania share for every 4.3 Zenith shares, per the filing. The company said the takeover offer consideration implies a value of AU$0.094 per Zenith share, based on Forrestania shares' closing price of AU$0.405 on Tuesday, representing a 28.1% premium to the 60-day volume-weighted average price, the filing said. The company directors believe the merger will give shareholders access to a larger gold producer with greater financial strength, stronger near-term cash flow, and improved growth opportunities. Shareholders must accept the offer by July 31, unless the deadline is extended, in order to receive Forrestania shares, the filing added. Forrestania Resources has increased its stake in the.