- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Purpose Bitcoin ETF
Silver47 Exploration
Syntheia
Black Swan Graphene
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Sandfire to Take Over MOD with Improved AU$167 Million Offer
Sandfire Resources has succeeded in its second attempt at taking over MOD Resources with a new and improved offer of AU$167 million.
Sandfire Resources (ASX:SFR,OTCQB:SRAFF) has succeeded in its second attempt at taking over MOD Resources (ASX:MOD,LSE:MOD) with a new offer of AU$0.45 per share, or AU$167 million.
In January, the major miner tried to buy out MOD with a bid of AU$0.38 per share, or AU$113 million. While Sandfire’s AU$1 billion market cap overshadows MOD’s comparatively modest AU$121.5 million cap, the latter stood its ground on the basis of its T3 copper project in Botswana.
The takeover offer was turned down as MOD believed Sandfire had undervalued the company’s assets.
In an announcement on Tuesday (June 25), the companies stated that they have executed a binding scheme implementation deed. Through the scheme, MOD shareholders can either receive AU$0.45 in cash per share up to a maximum of AU$41.6 million, or 0.0664 Sandfire shares for each MOD share.
The AU$0.45 per share offer represents a 45 percent premium on MOD’s closing share price of AU$0.31 on Monday (June 24), and a 108 percent premium to MOD’s closing share price on January 18, the last business day before MOD publicly turned down the previous offer.
“The MOD board considers the implementation of a scheme with Sandfire to reflect a compelling value proposition for MOD shareholders, who will benefit from Sandfire’s platform to deliver the T3 project into production and realize the full potential of the underexplored Kalahari copper belt,” MOD Managing Director Julian Hanna said in the statement.
“We see this partnership as providing the opportunity to maximize value from T3, which can be funded from Sandfire’s balance sheet and cash flows.”
MOD shareholders will be asked to approve the scheme at a meeting expected to be held in October.
The company completed a feasibility study for its coveted T3 asset in March, laying out an estimated life-of-mine revenue of US$2.3 billion, a pre-tax net present value of US$368 million and an internal rate of return of 33 percent.
The project, set to entail an 11.5 year open-pit mine and a 3 million tonne per year processing plant, will require development capital of US$182 million. With first production targeted for Q1 2021, T3’s ore reserve hosts 34.4 million tonnes of copper with a grade of 1 percent copper and 14.6 million ounces of silver with a grade of 13.2 grams per tonne silver.
As of Monday, copper was trading at US$5,916 per tonne on the London Metal Exchange.
While the fresh deal did wonders for MOD’s share price, which jumped 29.03 percent to AU$0.40 on the ASX on Tuesday, Sandfire took a 11.17 percent hit; it closed at AU$6.28.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
The Beginner’s Guide to Investing in Gold (Australia Edition)
Ready to invest in gold? Our beginner's guide makes it simple to get started.
Download your investing guide today.
Learn About Exciting Investing Opportunities in the Gold Sector
Your Newsletter Preferences
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.
A graduate of Durham College's broadcast journalism program, Olivia has a passion for all things newsworthy. She got her start writing about esports (competitive video games), where she specialized in professional Call of Duty coverage. Since then, Olivia has transitioned into business writing for INN where her beats have included Australian mining and base metals.
Learn about our editorial policies.