Inca Minerals has entered a binding agreement to acquire Stunalara Metals via an off-market takeover bid, aiming to expand its portfolio with high-grade gold and antimony exploration assets in North Queensland and beyond.
- Inca offers ~300 million shares (~22.6% post-bid) to acquire Stunalara Metals
- Stunalara’s Hurricane Project features multiple undrilled high-grade gold and gold-antimony prospects
- Bid valued at approximately $1.8 million based on Inca’s share price of $0.006
- Offer contingent on at least 90% shareholder acceptance and independent expert’s fairness report
- Stunalara Board unanimously recommends acceptance, with key director Andrew Haythorpe supporting the bid
Strategic Acquisition to Boost Exploration Portfolio
Inca Minerals Limited (ASX: ICG) has announced a significant step in its growth strategy by entering into a binding Bid Implementation Agreement to acquire Stunalara Metals Limited. The proposed off-market takeover bid involves issuing approximately 300 million fully paid Inca shares to Stunalara shareholders, representing about 22.6% of Inca’s shares on a post-bid basis, assuming no other share issues.
This acquisition targets Stunalara’s high-quality gold and antimony exploration projects, notably the Hurricane Project in North Queensland, which boasts multiple undrilled prospects with impressive rock chip sampling results. The bid values Stunalara at approximately $1.8 million, based on a deemed Inca share price of $0.006.
Hurricane Project: Untapped Potential in a Gold-Rich Province
The Hurricane Project, located roughly 125 kilometres northwest of Cairns, sits within the Hodgkinson Basin, a region known for its gold mineralisation but historically under-explored. Stunalara’s exploration has identified several prospects with high-grade gold assays, including standout samples such as 71.6 g/t gold at Typhoon and 45.7 g/t at Hurricane North. Additionally, gold-antimony veins at Holmes and Bouncer South show antimony concentrations up to 43.2%, highlighting the project’s polymetallic potential.
Despite these encouraging surface results, no drilling has yet been conducted, presenting a compelling opportunity for Inca to apply modern exploration techniques and potentially unlock significant value.
Broader Asset Base and Exploration Upside
Beyond North Queensland, Stunalara holds the Mt Read Project in Tasmania, an area with a rich mining history including copper, nickel, cobalt, and gold deposits. The company also recently applied for exploration licences in Western Australia with uranium and gold potential, further diversifying the asset base.
Inca’s CEO, Trevor Benson, emphasised the strategic fit, noting the Hurricane Project’s multiple mineralised veins with historical workings but no drilling, and the under-explored Mt Read project’s proximity to world-class deposits.
Conditions and Support for the Offer
The takeover bid is subject to standard conditions, including Inca acquiring a relevant interest in at least 90% of Stunalara shares on a fully diluted basis by the end of the offer period. The Stunalara Board has unanimously recommended shareholders accept the offer, contingent on no superior proposal emerging and the independent expert concluding the offer is fair and reasonable or not fair but reasonable.
Notably, Andrew Haythorpe, a Stunalara director and significant shareholder (approximately 18.6%), has declared his intention to accept the offer 21 days after it opens, signaling strong insider support.
The agreement also includes exclusivity provisions and a reimbursement fee arrangement to protect both parties’ interests during the bid process.
Capital Raising and Next Steps
Inca plans to undertake a capital raising to fund ongoing exploration activities following the outcome of the offer. The company has indicated it will consider existing shareholders in structuring the raising, though details remain to be confirmed.
Investors will be watching closely as the bid progresses, particularly the acceptance rate and the independent expert’s report, which will be pivotal in determining the transaction’s completion.
Bottom Line?
Inca Minerals’ bold move to acquire Stunalara Metals could unlock significant exploration upside, but success hinges on shareholder support and expert validation.
Questions in the middle?
- Will Inca achieve the critical 90% acceptance threshold to secure full control of Stunalara?
- How will the independent expert’s fairness report influence shareholder decisions and potential competing bids?
- What exploration plans and timelines will Inca set for the undrilled high-grade prospects at Hurricane?