14-04-2025
CZR Resources receives $46.4m offer for Robe Mesa project in Australia
CZR Resources has received a binding offer from the Robe River Iron Associates Joint Venture (RRJV) to acquire its interests in key tenements of the Robe Mesa iron ore project in Western Australia for A$75m ($46.4m) in cash.
The deal includes a sale and purchase agreement, a loan facility and a release deed to facilitate the transfer of assets.
The RRJV comprises North Mining, a fully-owned subsidiary of Rio Tinto; Robe River Mining, which is 60% owned by Rio Tinto and 40% by Mitsui; and Mitsui Iron Ore Development, a subsidiary of Mitsui & Co.
An upfront non-refundable exclusivity fee of A$650,000 is also part of the offer.
In addition, the agreement includes a working capital loan facility of A$3.85m secured against exploration licence E08/1686 and other assets of Zanthus, a CZR subsidiary.
The CZR board has deemed the Robe River JV offer superior to the previous Fenix Resources takeover offer, citing a significant premium, immediate cash availability and the retention of non-Robe Mesa project portfolios.
The cash consideration from RRJV is expected to provide CZR with approximately A$68m post-tax, allowing for the development of retained projects without dilutive capital raisings.
CZR will retain a 50% interest in several projects, which represent significant value for the company.
These retained projects include the Ashburton Link and the proposed Port of Ashburton export facility, the Croydon Gold Project, the Buddadoo titanium-vanadium magnetite project, and the Shepherd's Well and Yarrie exploration projects.
Fenix Resources has been notified of the superior proposal and has the right to submit a counterproposal by 17 April 2025.
If Fenix presents a counterproposal, the CZR Board will review it to determine if it is more favourable than the Robe River JV offer.
CZR's largest shareholder, Mark Creasy, has expressed support for the Robe River JV offer, stating his intention to vote in favour of the proposed transaction at the upcoming shareholder meeting, barring a superior proposal.
"CZR Resources receives $46.4m offer for Robe Mesa project in Australia" was originally created and published by Mining Technology, a GlobalData owned brand.
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