Iluka recently issued a notice to Sierra Rutile which said that it considers that these geotechnical risks are present and that the material adverse change condition precedent under the Merger Implementation Agreement (MIA) will therefore not be met.
The two companies announced a merger under section 170 of the BVI Business Companies Act on 21 November this year.
Sierra Rutile said in response to the notice delivered that it does not believe there are any events or facts that will result in not meeting the material adverse change condition precedent under the MIA.
“The long stop date under the MIA will occur on 30 November 2016. Sierra Rutile intends to take up an offer included in the Iluka Notice to consult in good faith with Iluka whether to extend the long stop date,” the company said in a statement.
Pending the resolution of the discussions, Sierra Rutile is considering all options and has reserved all rights available to it under the MIA.
The suspension of the admission to trading on AIM, and cessation of dealings in Sierra Rutile shares will no longer occur at 7.30 a.m. on 29 November 2016 and cancellation will no longer occur at 7.00 a.m. on 30 November 2016.