25 Jun Sandfire Resources seals $167 million deal for MOD Resources
Australian copper firm Sandfire Resources has acquired fellow ASX-listed miner MOD Resources at the second time of asking, after submitting an improved AUS$167 million deal for the Botswana-focused explorer.
Sandfire’s initial $94.5 million bid was rejected in January by MOD, who said the offer significantly undervalued the company’s assets, principally its advanced stage T3 copper project in Botswana.
However, Sandfire announced on Tuesday it had executed a binding deed for the implementation of a scheme of arrangement, which will see the company acquire 100% of the issued share capital of MOD.
“The acquisition of MOD adds the near-term T3 project in Botswana to our global development pipeline while also adding a significant landholding on the highly prospective and underexplored Kalahari copper belt,” said Sandfire’s CEO and managing director Karl Simich.
The T3 project is being proposed as an open pit copper development with an estimated 11-year mine life. The project is scheduled to commence construction next year ahead of first production in 2021.
In an investor presentation, Sandfire said its vision was to optimise T3 as the first cornerstone regional asset, while also exploring its underground potential.