Sirius Resources up for a huge takeover deal

Sirius Resources has advised its shareholders to accept a $1.8 billion takeover bid from Independence Group.

Under the deal, Independence would acquire Sirius for $4.38 per share, taking Independence’s value to $2.7 billion.

In a statement to the ASX, Sirius said the transaction will create a “leading diversified Australian mining company with a strong portfolio of high margin/ long life mining assets”.

Independence owns three mining operations in WA that produce nickel, gold, copper, silver and zinc.

Sirius is developing the Nova nickel-project, a high quality deposit in the Fraser Range in WA's Goldfields.

The company started mining at the project on Australia Day this year, just two years on from the discovery of the resource.

Box cut at Nova is complete and the decline to underground has started.

As part of the takeover deal, Sirius will demerge its non-core Polar Bear gold project as well as its Scandinavian exploration assets, including the Baloo gold deposit, into a new company called S2 Resources.

Independence Group has offered 0.66 of its own shares for each Sirius share on issue, plus 52c cash.

Sirius shareholders will receive one new share in S2 Resources for every 2.5 of their Sirius shares they hold.

Sirius shareholders are expected to vote on the deal at a meeting in late August.

Independence managing director Peter Bradford said the deal provides an “outstanding outcome for all parties”.

“The acquisition of Sirius continues our stated strategy of building a diversified mining company with a balanced portfolio of exploration, development and producing assets, focusing on high-margin and long life,” Bradford said.

Sirius managing director Mark Bennett said he was proud of what the company and its employees have achieved in its short history.

Bennett will join the board of Independence as part of the deal, while also run the newly formed S2 Resources.

“The board and management of Sirius have full confidence in the ability of Mr Peter Bradford and the IGO team to drive the combined company’s projects forward and create significant value for shareholders,” Bennet said.

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