The offer has been made to acquire including ACE’s share of uranium oxide concentrates already mined.
Alliance said that the offer is significantly below fair value, based on internal and external valuations of the project.
ACE’s share of uranium oxide concentrates mined to 31 December 2014 of 414,684lbs has a market value of around $20m, the company said.
Deloitte Corporate Finance has been appointed by Alliance to advise it on the transaction.
During discussions, Quasar stated that it is not prepared to raise its offer further. Alliance said it will sell ACE’s interest if Quasar makes an appropriate offer.
Last year, ACE voted against Alliance 2015 program and budget for the project, to produce 2.64 million pounds of uranium concentrates and a cash expenditure of $107.75m.
Consequently, Alliance’s stake in the project will reduce to around 15% by 31 December 2015.
