- OZ Minerals (OZL) will purchase Cassini Resources (CZI) under a scheme arrangement which includes the West Musgrave Project
- Under this deal, OZ Minerals will obtain full ownership of the West Musgrave Project, increasing its interest from 70 per cent to 100 per cent
- Additionally, Cassini will enter an inter-conditional demerger of its Yarawindah Brook and Mount Squires assets into a new company, Caspin Resources
- Following this, Caspin intends to apply for listing on the ASX
- If OZ Minerals sells any interest in West Musgrave, Caspin may also receive up to $20 million
- The Board of Cassini has unanimously recommended the purchase
- Oz Minerals is up 1.06 per cent on the market this morning and is selling shares for $10.51 each, while Cassini is up 28 per cent, trading for 16 cents each
OZ Minerals (OZL) will purchase Cassini Resources (CZI) under a scheme arrangement, that includes the West Musgrave Project.
Under this deal, OZ Minerals will obtain full ownership of the West Musgrave Project, increasing its interest from 70 per cent to 100 per cent. The project has three nickel and copper sulphide deposits.
Additionally, Cassini will enter an inter-conditional demerger of its Yarawindah Brook and Mount Squires assets into a new company, Caspin Resources. Following this, Caspin intends to apply for listing on the ASX.
Shareholders in Cassini will receive an implied value of 16 cents per share and shares in Caspin.
If OZ Minerals sells any interest in West Musgrave, Caspin may also receive up to $20 million.
OZ Minerals CEO Andrew Cole says the purchase comes from a strong and effective working relationship with Cassini and is the best for both companies.
“We appreciate the quality project Cassini introduced to OZ Minerals and we have valued their input in the project throughout the further scoping study and pre-feasibility study. This acquisition gives OZ Minerals 100 per cent ownership of the project, allowing flexibility regarding future funding and development options,” he said.
“This is a promising project with strong sustainability credentials, both in terms of the copper and nickel, to be mined being critical inputs for the renewable economy and also in relation to its low carbon footprint with some 80 per cent of the power generated through renewable sources including solar and wind,” he added.
The Board of Cassini has unanimously recommended the purchase and have confirmed their intentions to vote in favour of the deal. Major shareholders of Cassini, including Tinci Materials, has confirmed its intentions to vote in favour of the transaction.
“In accepting the offer, Cassini shareholders are able to realise immediate value for their stake in the West Musgrave Project, whilst retaining their exposure to the project via the OZ Minerals shares that form part of the consideration,” Andrew explained.
Oz Minerals is up 1.06 per cent on the market this morning and is selling shares for $10.51 each, while Cassini is up 28 per cent, trading for 16 cents each at 11:45 am AEST.