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Loyal Metals Agrees to A$79.11M All-Cash Acquisition by Bumi Resources

• Loyal Metals agrees to A$79.11M all-cash takeover by Bumi Resources at A$0.45/share.

• Deal offers substantial premium and is supported by board and major shareholders.

• Acquisition provides exit for Loyal’s critical minerals strategy and Highway Reward project.

Loyal Metals Ltd (LLM) has agreed to an A$79.11 million all-cash takeover by PT Bumi Resources Tbk, offering shareholders A$0.45 per share. This premium offer, unanimously recommended by the board and supported by major shareholders, represents a significant exit for the critical minerals explorer.

Bumi Resources Acquires Loyal Metals

Loyal Metals has entered into a Scheme Implementation Deed with PT Bumi Resources Tbk (Bumi). Under this deed, Bumi will acquire 100% of Loyal Metals via an Australian court-approved Scheme of Arrangement.

Loyal Metals shareholders are set to receive an all-cash offer of A$0.45 per share. This consideration implies an equity value of approximately A$79.11 million for the company. The offer represents a 40.6% premium to Loyal Metals’ last closing price of A$0.32 on 24 April 2026, and a 49.6% premium to the 10-day volume-weighted average price (VWAP) of A$0.30 up to the same date.

The board of Loyal Metals has unanimously recommended that shareholders vote in favour of the scheme. Key shareholders, representing approximately 28.6% of the ordinary shares on issue, have already committed to supporting the proposal. Directors intend to vote their own holdings, which amount to around 2.1% of issued capital, in favour.

Transaction Details and Funding

The proposed all-cash transaction values Loyal Metals’ equity at approximately A$79.11 million. Bumi Resources plans to fund the acquisition from its existing cash reserves and/or available financing facilities. As of 31 December 2025, Bumi reported approximately US$118.6 million in unrestricted cash.

Completion of the scheme is subject to several customary conditions precedent. These include approval from the Foreign Investment Review Board (FIRB), court approvals, and the receipt of other regulatory consents. A key condition also requires at least 75% of votes cast and a majority by number of shareholders to approve the scheme at a meeting expected in early August 2026.

If all conditions are met, implementation of the scheme is anticipated shortly thereafter, in mid-August 2026.

Highway Reward Acquisition Progress

Just prior to the takeover announcement, Loyal Metals confirmed it had exercised its option to acquire 100% of the Highway Reward Copper-Gold Mine and Big Magpie project in Queensland. This move, announced in April 2026, made the Sale and Purchase Agreement effective, with title transfer expected in H2 2026.

The Highway Reward project is noted for its historic high-grade nature, with past production including 3.65 million tonnes at 5.7% copper and 260,000 tonnes at 4.5 grams per tonne gold. Loyal Metals’ exploration at Highway Reward has been promising, with recent drilling confirming significant copper-gold-silver mineralisation. The third drillhole, 25HRDD003, intersected a large continuous mineralised interval of 179 metres at 1.47% copper equivalent at approximately 100 metres vertical depth.

These results, supported by gravity modelling, suggest a potentially large, bulk-mining style opportunity, moving beyond the historical narrow-lens mining. This acquisition and exploration progress aligns with Loyal Metals’ strategic shift towards copper as a critical mineral.

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Source: SmallCaps