- The Supreme Court of Western Australia has given the thumbs up for Sandfire Resources to acquire all of MOD Resources shares
- The acquisition will become official once the court lodges the agreement to the Australian Securities and Investments Commission
- MOD expects the court orders to be lodged tomorrow
- On market close today, MOD gained 1.16 per cent is selling shares for 44¢ apiece, while Sandfire has gained 3.03 per cent and is selling a share at $6.47 per share
The Supreme Court of Western Australia has approved Sandfire Resources to acquire all of MOD Resources shares.
The acquisition will become legally effective upon lodgement of the court’s orders with the Australian Securities and Investments Commission (ASIC). MOD says it is expected that the court’s orders will be lodged with ASIC tomorrow.
If this occurs, MOD’s shares will be suspended from trading on the Australian Securities Exchange (ASX) at the close of trade tomorrow.
MOD’s eligible shareholders will be issued 0.005731 Sandfire shares for every MOD share held.
The company said based on the number of MOD shares that selected cash, will receive $0.411 per MOD share.
“MOD shareholders holding unmarketable parcel who have not made or unable to make an election to receive Sandfire shares, will have the scrip consideration,” the company said.
It is expected that the scrip consideration and cash consideration will be issued to MOD shareholders on October 23.
MOD Resources is a dual listed copper exploration and development company with a dominant land position within the Kalahari Copper Belt in Botswana.
The company is focused on the development of its own T3 Copper Project. T3 has the potential to be a high-margin, low-cost copper mine.
Sandfire is a mid-tier Australian mining and exploration company. It’s flagship is the DeGrussa Copper-Gold mine in Western Australia. DeGrussa produces high-quality copper-in-concentrate with significant gold credits.
The acquisition is expected to be completed by the end of October but the company says that factors outside the control of the company could affect the time it takes.
MOD Resources has gained 1.16 per cent on the market close today and is selling shares for 44¢ apiece while Sandfire has gained 3.03 per cent and is selling share at $6.47 per share.