Goldfields gold producer Norton Gold Fields hopes to have injected much-needed momentum into its stuttering takeover bid for smaller peer Bullabulling Gold after late yesterday lifting its cash bid 14 per cent to $28 million.
But the increase, from 7c a share to 8c per Bullabulling share, comes with a hook.
The extra cash will only flow if Norton reaches a relevant interest in Bullabulling of 30 per cent or more by June 30, the new extended deadline for its offer.
Bullabulling yesterday did not comment on the bid increase but is expected to maintain its rejection of the hostile offer and point to independent expert BDO's valuation of 11.1c and 16.1c.
Its shares closed unchanged at 7.1c yesterday before Norton announced the increased bid price and extended the offer deadline.
Bullabulling has a dual-listing on London's AIM market, where its shares last night jumped 0.25p to 4p (7.2c).
Norton is stranded on 15.9 per cent, which includes stock it has bought on-market at the earlier 7c bid price, as it struggles to gain any traction with Bullabulling shareholders since launching the offer two months ago.