THE dissident group of shareholders behind a reverse takeover bid for miner Condor Resources yesterday warned the firm’s cash resources will not be enough to tide it over past the end of next year.
Shareholder Michael Silver and half a dozen other investors joined forces with smaller rival Worldwide Natural Resources last Wednesday, as it unveiled a one-for-one share offer for Condor, valuing it at £1.49m.
The proposal is believed to be the first ever hostile bid by a Plus-listed company for a firm listed on Aim.
Silver and his supporters, who control 15 per cent of Condor, argue it is burning up its £1.2m of cash rapidly, paying £550,000 a year in overheads without generating any income from its South American mines, which are currently out of action.
Condor on Friday rejected WNR’s offer, claiming it “undervalues” the firm and provides an “unwelcome distraction” from a share exchange deal it agreed with investment fund Grafton Resources on 27 May.