Pilbara-based minerals developer Fox Resources has announced its intention to make an off-market takeover offer for all the shares in Hannans Reward.
The Company said the combination of the complementary nickel and iron ore assets of the two organisations would provide long term benefits of scope and scale for the shareholders of both Companies.
The all scrip offer is based on one Fox Resources share, for every two Hannans Rewards shares on issue. The off market bid is not for the options.
Fox Resources Chairman Terry Streeter said the organisations have complementary assets and focus, and combining these would provide a strong geographical spread of assets and a team with considerable experience in the development of successful base metals projects.
“Hannans Reward shareholders would also benefit from Fox’s relationships into China via our major shareholder and off-take partner Jinchuan Group, which is China’s largest producer of nickel,” he said.
“While the nickel market is currently at low levels, we have a long term positive outlook for steel feed minerals, and through joint development there is an opportunity to position these assets to capitalise on the return to improved metals prices,” Streeter said.
Hannans Reward is a WA focussed explorer with its primary projects being the Forrestania Nickel project east of Perth, and the Jigalong iron ore project in the Pilbara.
Fox is in the process of preparing a formal Bidder’s Statement and will lodge that document with the Australian Securities Exchange and the Australian Securities and Investments Commission in due course.