Gindalbie Metals’ investors have approved the company’s $25 million sale to China-based Ansteel, finalising a deal announced in March.
Ansteel will purchase the remaining 64.11 per cent of Gindalbie it doesn’t already own for 2.6 cents a share, a 90 per cent premium on Gindalbie’s 30-day volume weighted average price before the launch of the deal.
In addition to the takeover, shareholders also approved the previously announced demerger of Gindalbie subsidiary Coda Minerals and an associated capital reduction plan.
“These transactions were put to our shareholders in March of this year to return cash to our shareholders and provide opportunities for value creation through Coda Minerals,” Gindalbie non-executive chairman Keith Jones said.
“Today’s voting results were based on strong shareholder participation and overwhelming support for all three resolutions.”
The Karara mine, located 200 kilometres east of Geraldton in WA, was purchased in 2007 during an iron ore boom in a JV between majority owner Ansteel (52 per cent) and Gindalbie (48 per cent).
The demerger of Coda was performed to allow the subsidiary to benefit from exploration opportunities at Mt Gunson copper-cobalt project in South Australia (in which Coda can earn up to 75 per cent) without exposure to Gindalbie’s liabilities associated with Karara.
Mt Gunson is around 135 kilometres north of Port Augusta in “one of the world’s premier copper belts”, according to Gindalbie.