Wyloo Metals Pty Ltd made an on-market takeover offer for all shares of Mincor Resources NL that it does not already own. Wyloo is Mincor’s largest shareholder, with a 19.9% interest. The proposed acquisition, Wyloo said, is in line with the company’s strategy to invest in and develop projects that will produce the raw materials needed for the rapid decarbonization of the global economy.
The A$1.40 ($0.94) cash per share offer implies an equity value for Mincor of approximately A$760 million ($511 million).
Mincor has two major projects: the Kambalda nickel operations, which comprise the brownfields Northern Operations and the greenfields Cassini nickel mine; and the Widgiemooltha gold exploration project.
“Wyloo is providing an immediate opportunity for all Mincor shareholders who wish to dispose of their holdings to do so at a significant premium to Mincor’s last closing price,” said Wyloo Metals CEO Luca Giacovazzi. “Wyloo’s offer is unconditional; shareholders can sell into Wyloo’s on-market bid today and receive certain cash value for their Mincor shares.”
Mincor acknowledged receipt of the proposal and warned that shareholders who sell on market now will not be able to participate in any higher offer that may emerge. “We are in a world where the adoption of electric vehicles and industrial decarbonization continues to increase demand for high-grade nickel sulphides,” Mincor Managing Director and CEO Gabrielle Iwanow said. “The grade, location, metallurgy and exploration upside of Mincor’s Kambalda nickel sulphide assets mean that they are highly strategic for industry players operating both upstream and/or downstream in battery and critical minerals. As Mincor approaches full ramp-up in mining and continues to pursue its highly prospective exploration opportunities, we believe that this strategic value will continue to grow.”