Bacanora's board has rejectred an unsolicited non-binding indicative proposal from Rare Earth Minerals, an AIM listed investment vehicle with a 19.8% holding in the company. The proposal envisages an all-share merger of Bacanora and REM with REM acting as the acquiring entity (via a reverse takeover) and issuing newly issued REM shares to Bacanora's shareholders. The merger exchange ratio proposed by REM is between 135 and 141 REM shares for each outstanding Bacanora share. The Board of Bacanora strongly rejects the Proposal believing it significantly undervalues the company and jeopardises Sonora's development path to production.
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