Carawine Resources, an Australian junior explorer, has turned down a takeover offer from QGold, citing that the offer price had undervalued its shares and the full underlying potential of its projects.

The company’s board of directors has unanimously recommended its shareholders reject the offer from QGold. Currently, the offer is slated to close in late April 2022 unless it is either extended or withdrawn.

The offer from QGold was made last month under which it proposed to acquire the shares it previously didn’t own in Carawine Resources for A$0.21 ($0.15) per share in cash.

QGold and its associates have a stake of around 19.65% in the junior exploration company.

Currently, Carawine Resources is engaged in five gold, copper, and base metal exploration projects that are located in Western Australia and Victoria. These include the Paterson project, the Oakover project, the Tropicana North project, and the Fraser Range project in Western Australia and the Jamieson project in Victoria.

Carawine Resources’ current focus is on the Tropicana North Project, which is said to have produced a high-grade gold discovery. The company is following up the gold discovery actively with plans of additional drilling programmes to be carried out over the next six to 12 months.

Located in the Tropicana and Yamarna regions of Western Australia’s north-eastern goldfields, the Tropicana North project contains an 80km strike of the Tropicana Belt.

The company stated: “The Directors believe Carawine’s portfolio of projects has substantial potential and strategic value, which is not reflected in the Offer Price. Results from exploration and drilling programmes are anticipated to be released to the market in the short to medium term.”