- Write by:
-
Monday, June 22, 2020 - 10:38:47 AM
-
850 Visit
-
Print
Mining News Pro - OZ Minerals is set to acquire Cassini Resources, giving it complete ownership of the West Musgrave nickel-copper project in Western Australia.
This will see OZ Minerals take complete ownership of the West Musgrave project, increasing its stake from 70 to 100 per cent.
The West Musgrave project has three existing nickel and copper sulphide deposits, with Cassini acquiring the project from BHP in 2014.
The deal values Cassini at $76 million, with the target’s shareholders receiving one OZ Minerals share for every 68.5 shares held.
Cassini will also conduct a demerger of its Yarawindah Brook and Mount Squires assets via a new company, Caspin Resources Limited, with Cassini’s shareholders to claim immediate value of the West Musgrave project, Yarrawindah Brook and Mount Squires through the new company.
Cassini shareholders will receive shares with an implied value of $0.16 per share in addition to the Caspin shares.
Under the agreement, Caspin can also receive an addition cash payment of up to $20 million if OZ Minerals sells west Musgrave in the future.
“We appreciate the quality project Cassini introduced to OZ Minerals and we have valued their input in the project throughout the further scoping study and pre-feasibility study. This acquisition gives OZ Minerals 100 per cent ownership of the project allowing flexibility regarding future funding and development options,” OZ Minerals chief executive Andrew Cole said.
“This is a promising project with strong sustainability credentials both in terms of the copper and nickel to be mined being critical inputs for the renewable economy and also in relation to its low carbon footprint with some 80 per cent of power generated through renewable sources including solar and wind.
“We are also pleased to welcome Cassini shareholders on to OZ Minerals’ register to continue to benefit from further progress at West Musgrave which complements our operations at Prominent Hill and Carrapateena in South Australia and the Carajás hub in Brazil.”
The entire Cassini board agreed to the transaction, as company chief executive Richard Bevan stated the timing of the sale was prospective.
“In accepting the offer, Cassini shareholders are able to realise immediate value for their stake in the West Musgrave project whilst retaining their exposure to the project via the OZ Minerals shares that form part of the consideration,” he said.
“In addition, we are excited to be launching a new company, that intends to apply for listing on the ASX (subject to regulatory approvals), and in which Cassini shareholders will receive pro-rata shares. Caspin will focus on the highly prospective exploration projects at Yarawindah Brook and Mount Squires.”
An independent expert is set to be deployed to manifest the value of Caspin shares that Cassini’s shareholders will receive, along with the total transaction consideration from the shareholders.
OZ Minerals and Caspin have now progressed outlining the potential payment from OZ Minerals to Caspin.
Caspin is expected to apply for an ASX listing and will become an exploration focussed company.
Short Link:
https://www.miningnews.ir/En/News/551725
Top copper producer Codelco reported a decline in quarterly output due to lower quality ore at its aging Chilean mines — ...
When former boss Mark Cutifani left Anglo American Plc in mid-April 2022, things had rarely looked better for the ...
Chile President Gabriel Boric said on Thursday he is targeting an increase in the country’s annual copper output by 1 ...
Brazilian miner Vale SA sees no impact from BHP Group’s bid for Anglo American on the latter’s Minas-Rio project, its ...
Copper miner Antofagasta Plc is holding meetings with investors this week for its first dollar bond offering in nearly ...
Copper needs to reach $12,000 a ton — a 20% jump from this week’s high — to incentivize large-scale investments in new ...
Eramet subsidiary SLN’s nickel mining operations in northern New Caledonia have been suspended, adding to difficulties ...
Teck Resources, Canada’s largest diversified miner, saw its copper production jump by 74% in the first three months of ...
Aurubis AG, Europe’s largest refined copper producer, has started a project in its Bulgarian smelter which will expand ...
No comments have been posted yet ...