Regis Resources Limited (ASX:RRL) shares lower on acquisition bid

Confirming media speculation, Regis Resources Limited (ASX: RRL) this morning announced that it has submitted a confidential, indicative and incomplete proposal to acquire small-cap gold developer Capricorn Metals Ltd  (ASX: CMM).

The indicative proposal contemplates an offer of 11.4 cents in Regis shares per Capricorn share, representing a premium of 93.2% to the closing Capricorn share price on Friday, September 21, 2018.

The transaction is conditional on Regis receiving the recommendation of the Board of Capricorn, the support of Capricorn’s major shareholders, and execution of a binding implementation agreement.

While Capricorn’s Board has confirmed that it would unanimously recommend the proposal, Capricorn’s largest shareholder, Hawke’s Point, has not yet been prepared to support it. Hawke’s Point holds an 18.9% interest in Capricorn.

A meeting has been scheduled this week between Regis and representatives of Hawke’s Point to determine whether its support will be garnered.

The Regis Resources share price has fallen 7% this afternoon, down 29 cents to $3.85.

Capricorn Metals has seen its share price skyrocket higher on the news, up 51% to 8.9 cents.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!