MACH Metals Australia has proposed to take over minerals exploration and development company Rex Minerals in an all-cash deal representing an equity value of A$393m ($264.97m).
Both parties have signed a scheme implementation deed (SID) in this connection.
Under the terms of the SID, each shareholder of Rex Minerals excluding MACH Metals will receive a cash consideration of A$0.47 ($0.32) per Rex Minerals share.
Currently, MACH Metals owns around 121.5 million shares of Rex Minerals. This amounts to 15.8% of the Australian minerals exploration and development company’s issued equity.
Rex Minerals is engaged in developing its 100%-owned Hillside copper project in Australia, which currently contains a Mineral Resource of 1.9 million tonnes (Mt) of copper and 1.5 million ounces (Moz) of gold.
MACH Metals managing director Ferdian Purnamasidi said: “Our strong focus on copper is critical to the energy transition process.
“We remain committed to advancing the excellent work undertaken by Rex on the Yorke Peninsula, including supporting the local workforce and the broader Yorke Peninsula community throughout the ownership transition.”
Rex Minerals said that MACH Metals’s offer came after a competitive global partnering process. It was focused on the A$854m ($575.79m) funding and subsequent development pathway for the Hillside copper-gold project.
The Hillside project is located in South Australia. It involves the development of an open pit mine and associated processing plant along with other infrastructure for mining and processing ore and the subsequent shipping of the marketable concentrates.
Rex Minerals CEO and managing director Richard Laufmann said: “This Transaction also represents a more certain outcome for wider stakeholders in Hillside, including the local community, the South Australian Government and Rex employees who will benefit from the significant financial strength and proven track record of MACH to deliver the successful development of Hillside.”
Subject to regulatory and shareholders’ approval along with customary conditions, the transaction is anticipated to be completed in late October 2024.
For the transaction, Macquarie Capital is serving as Rex Minerals’ financial adviser, with Baker McKenzie as its legal adviser. Meanwhile, MA Moelis Australia is acting as the financial adviser for MACH Metals, and Corrs Chambers Westgarth is serving as its legal adviser.
