UCL Resources shares prices april 2 2012

UCL Resources shares prices april 2 2012 : UCL Resources (ASX: UCL) shares rallied 24% to A$0.335 today as the company fends off a hostile takeover bid by Minemakers (ASX: MAK). The company has been on an upwards share trajectory since around mid-January when it was trading at a 12 month low of around $0.17, with shares doubling during the period to an intra-day high of $0.34 today.

In early March, UCL’s largest shareholder, Twynam Agricultural Group, rejected Minemakers’ unsolicited takeover bid.

Also rejecting the offer was UCL’s fourth largest shareholder, Donwillow.

Between them Twynam and Donwillow hold 25.6 million UCL shares, representing about 31.69% of UCL’s share capital.

UCL believes the two companies’ rejection of Minemakers’ offer is a “resounding endorsement” of the company’s ability to realise value from the Sandpiper Marine Phosphate Project off the coast of Namibia.

The board has also unanimously recommended that shareholders reject the offer after an independent expert concluded the offer was not fair and not reasonable to UCL shareholders.

Minemakers’ offer, if successful, would dilute UCL shareholders’ interest in Sandpiper from 42.5% to 21.7%.

In exchange, UCL Shareholders would receive an interest in Minemaker’s Wonarah Phosphate Project – where UCL says production is estimated to be more than three years away, where several target milestones have been missed, and significant infrastructure expenditure will be required.

By comparison, the Sandpiper project is scheduled to be in production by the end of 2013.

In late February, UCL announced an increase in the Indicated Resource to 220.3 million tonnes at 20.13% phosphate.

An initial Measured Resource of 4.1 million tonnes at 20.45% phosphate has also been defined, with total resources now 1.8 billion tonnes, a 41 million tonne increase on the August 2011 resource.

The project is believed to be the world’s largest individual marine phosphate resource, with sufficient resources to support a 20-year mine life.

The company announced today the completion of the Definitive Feasibility Study, which is currently being reviewed and scheduled for release mid-April.

UCL has also begun discussions with potential financiers in relation to Sandpiper’s debt funding requirements.

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