Western Areas’ main asset is the 100% owned Forrestania nickel project (above), located 400 kilometers east of Perth in Western Australia. (Photo: Western Areas)
IGO Ltd. has received approvals from Western Areas Ltd. shareholders and the Supreme Court of Western Australia and the lodgement of the orders with the Australian Securities and Investment Commission (ASIC) for IGO to acquire 100% of Western Areas.
IGO has been working closely with Western Areas to integrate the two businesses. Western Areas shares trading were suspended at the end of business on June 8 and the scheme is expected to be implemented on June 20.
“The acquisition of Western Areas represents a logical consolidation of key nickel assets in Western Australia and enhances IGO’s position as a leading, independent producer of metals critical for a clean energy future,” IGO Managing Director and CEO Peter Bradford said. “We are looking forward to unlocking unique synergies across the combined nickel portfolio comprised of Nova, Forrestania and Cosmos, as well as the immediate commencement of the downstream nickel sulphate feasibility studies — bringing IGO closer to key customers in the clean energy and electric vehicle industries.”
Western Areas agreed to the revised takeover offer from IGO that valued the nickel producer at A$1.26 billion ($939 million) back in April. The offer of A$3.87 for every Western Areas share is 15.2% higher than the prior offer of A$3.36 and represents a premium of 6% to the stock’s last close.
