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There was a big deal on the table for Energy Resources of Australia Ltd (ASX:ERA) until – in the very same market announcement – there wasn’t.
ERA this morning confirmed Boss Energy (ASX:BOE) had made a conditional offer to buy its Jabiluka project for $550 million.
A few paragraphs later, Energy Resources explained the offer had been withdrawn because the NT Government wasn’t renewing the Jabiluka Mineral Lease.
Decision from the top
The ABC reported late last week Prime Minister Anthony Albanese himself declared the site would never be mined.
Boss Energy’s offer was subject to conditions including due diligence which included Boss Energy being
satisfied with the status of the project, known as MLN-1, as well as relevant regulatory and third party approvals (including Ministerial and Northern Land Council approvals).
“The non-binding offer, which was put to Jabiluka’s leaseholder ERA, contained several key conditions precedent,” Boss announced to the market this morning.
“These included that any transaction involving Boss would have the full support and approval of the Mirarr traditional owners, the Northern Land Council, relevant regulatory bodies and the Federal Government.
“The offer was also subject to satisfactory due diligence being completed by Boss (including being satisfied with the Jabiluka mining lease).
“Boss made the offer in the belief that there may be a limited opportunity to acquire the asset in a structure that could benefit all stakeholders.
“Given the Federal Government’s decision late last week to end the mineral lease on Jabiluka, Boss has withdrawn the offer and discussions have concluded.
“Boss will continue to evaluate value accretive development opportunities to grow production and cashflow in tier-one locations.”
What’s next for ERA?
ERA said discussions had been in initial stages, before being withdrawn based on the NT Government news released on Friday around the lease.
ERA reports it’s assessing the options available to it
following the Northern Territory government non-renewal announcement and, perhaps given the framing of the announcement, managed to edge ahead on market this morning to 3.4 cents.
