SYDNEY, AUSTRALIA: AIC Mines Limited (ASX: A1M) have executed a Bid Implementation Deed to implement AIC Mines’ off-market takeover offer for Demetallica on a recommended basis.

Under the terms of the Agreement, AIC Mines has agreed to improve its Offer consideration to 1 AIC Mines share for every 1.3 Demetallica shares held, and the Board of Demetallica has agreed to unanimously recommend the improved Offer.

The Recommended Offer represents an implied offer price of approximately $0.391 per Demetallica share based on the last closing price of AIC Mines immediately prior to the initial announcement of the Offer on 19 September 2022.

The Recommended Offer is best and final and will not be increased.

HIGHLIGHTS

• Logical combination of AIC Mines’ Eloise mine and processing facility with Demetallica’s Jericho copper deposit which are located only 4 kilometres from each other.

• Quickest and most efficient means of developing, mining and processing the Jericho deposit and potentially other deposits within Demetallica’s broader Chimera project.

• Creates a stronger company with enhanced scale, market relevance and trading liquidity.

• Potential for staged expansion to increase combined mine life to over 10 years and production to over 20,000tpa Cu and 10,000ozpa Au in concentrate – a 60% increase on the current production rate at Eloise.

• Creates a complementary exploration portfolio that can be more effectively explored as part of a larger and financially stronger mining company.

The Recommended Offer follows a period of constructive engagement between the companies since the Offer was announced on 19 September 2022. The Recommended Offer delivers logical consolidation to grow an exciting growth-oriented mid-tier Australian copper and gold mining company which will deliver strong benefits for both AIC Mines and Demetallica shareholders.

Under the Recommended Offer, Demetallica shareholders will own approximately 21.0% of the combined company.