Gandel Metals Pty Ltd made an offer to acquire additional approximately 28% stake in Alliance Resources Limited (ASX:AGS) for AUD 10.4 million. Under the terms, offer price is AUD 0.18 per share. Pre acquisition, Gandel Metals Pty Ltd with its associates held 72% stake in Alliance Resources Limited.

Gandel Metals intends to fund the cash consideration under the offer using a combination of available cash reserves of Gandel Metals and private funding arrangements between Gandel Metals and Abbotsleigh. The completion of the offer is subject to no prescribed occurrences, at or before the end of the offer period, Gandel Metals with its associates having a relevant interest in at least 90% of the Alliance Shares on issue. As of May 12, 2022, Gandel Metals and its Associates have a relevant interest in at least 90% of the shares in Alliance Resources Limited.

The offer is not subject to any regulatory approval. The AGS board, excluding Ian Gandel, is considering the proposal. Shareholders are not required to take any action at this time in relation to the proposal.

Upon acquisition of 90% stake in Alliance, Gandel Metals will proceed with compulsory acquisition of remaining shares for same offered share price of AUD 0.18 cash per share. The offer period starts on April 20, 2022 and ends on June 6, 2022, unless extended or withdrawn. HWL Ebsworth Lawyers Pty Ltd. and Gadens acted as legal advisor to Alliance Resources Limited and Gandel Metals Pty Ltd.