Private equity bid for Mungana
Private equity instrument Auctus Chillagoe has lobbed a surprise cash bid for Mungana Goldmines valuing the company at $32.5 million.
Auctus Chillagoe, which is backed by Denham Capital, is offering 13.5 cents cash for each Mungana share.
Mungana was spun out of the since-collapsed base metals miner Kagara in 2010.
Kagara entered voluntary administration in April 2012.
Mungana subsequently acquired all of Kagara’s far north Queensland assets and switched its focus from gold to zinc.
Mungana is majority owned (72.16 per cent) by the liquidators of Kagara.
Shares in the company were up 2.5 cents, or 23.81 per cent, to 13 cents at 11.45am.
