Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<a href="https://www.smartkarma.com/entities/sandfire-resources-nl" target="_blank" data-smartkarma-citation="entities:1259:1" rel="noopener">Sandfire Resources Nl (SFR AU)</a> has <a href="https://www.sandfire.com.au/site/PDF/2385_0/SandfiretoAcquireMODResourcesAnnouncement" target="_blank" rel="noopener">reloaded</a> with an implied Scheme consideration of A$0.45 for <a href="https://www.smartkarma.com/entities/mod-resources-ltd" target="_blank" data-smartkarma-citation="entities:5925:1" rel="noopener">Mod Resources (MOD AU)</a>, a 45% premium to the closing price of A$0.31/share on the 24 June.
SFR had previously approached MOD with an A$0.38/share Indicative Offer back in <a href="https://www.asx.com.au/asxpdf/20190121/pdf/441zltx55vszrw.pdf" target="_blank" rel="noopener">January</a> this year.
MOD shareholders can elect either a cash consideration of A$0.45/share, subject to a cap of A$41.6mn (~25% of the Offer size) OR a scrip consideration of 0.0664 SFR shares for every 1 MOD shares.
The Offer has the unanimous backing of MOD's board who will vote their collective holdings of 7.02% for the Offer.
Metal Tiger, MOD's second largest shareholder and JV partner, will vote its 10.48% stake (&amp; up to 19.9% of shares out after the exercise of 40mn options) in favour of the scheme. The largest shareholder is AustalianSuper (11.78%).
The acquisition provides SFR with access to MOD's Botswana T3 copper prospects while bolting on additional (&amp; supplemental) supply to SFR's declining DeGrussa copper-gold mine in Western Australia.
The Offer is expected to complete late October/early November. The word on the street is that SFR beat out a number of suitors, both domestic and overseas, therefore a competing offer is a possibility. Expect this to trade tight to terms. 
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Quiddity's new <a href="https://skr.ma/vfAwp" target="_blank" data-smartkarma-citation="insights:29174" rel="noopener">Quiddity Australia M&amp;A Guide 2019</a> is now published with guidelines to the relevant rules, regulations, documentation, and pointers to the Australian M&amp;A landscape. There are several others in the series - watch for more to come shortly.
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Sandfire Resources Nl (SFR AU) has reloaded with an implied Scheme consideration of A$0.45 for Mod Resources (MOD AU), a 45% premium to the closing price of A$0.31/share on the 24 June.
SFR had previously approached MOD with an A$0.38/share Indicative Offer back in January this year.
MOD shareholders can elect either a cash consideration of A$0.45/share, subject to a cap of A$41.6mn (~25% of the Offer size) OR a scrip consideration of 0.0664 SFR shares for every 1 MOD shares.
The Offer has the unanimous backing of MOD's board who will vote their collective holdings of 7.02% for the Offer.
Metal Tiger, MOD's second largest shareholder and JV partner, will vote its 10.48% stake (&amp; up to 19.9% of shares out after the exercise of 40mn options) in favour of the scheme. The largest shareholder is AustalianSuper (11.78%).
The acquisition provides SFR with access to MOD's Botswana T3 copper prospects while bolting on additional (&amp; supplemental) supply to SFR's declining DeGrussa copper-gold mine in Western Australia.
The Offer is expected to complete late October/early November. The word on the street is that SFR beat out a number of suitors, both domestic and overseas, therefore a competing offer is a possibility. Expect this to trade tight to terms. 


Quiddity's new Quiddity Australia M&amp;A Guide 2019 is now published with guidelines to the relevant rules, regulations, documentation, and pointers to the Australian M&amp;A landscape. There are several others in the series - watch for more to come shortly.


MOD Resources Supports Latest Sandfire Offer

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Equity Bottom-Up

MOD Resources (MOD) is a copper-silver exploration and development company with a substantial ground holding in the Kalahari Copper Belt, Botswana. The company has been very successful with its regional exploration concept, which has led to the discovery and drill-out of the significant T3 copper-silver deposit and the delineation of a preliminary resource at the T1 copper-silver deposit. Regional drilling in the T3 Expansion Project has led to two additional discoveries, A1 and A4, while regional drilling at the T20 Exploration Project has also returned interesting results at T4 and T23. MOD is completing a feasibility study at T3, which will benefit from a coarser grind size and an increased base case plant size, and a scoping study at T3 underground, both due for completion in Q119, while continuing its regional exploration programme.

MOD Resources (MOD) is a copper-silver exploration and development company with a substantial ground holding in the Kalahari Copper Belt, Botswana. The company has been very successful with its regional exploration concept, which has led to the discovery and drill-out of the significant T3 copper-silver deposit and the delineation of a preliminary resource at the T1 copper-silver deposit. Regional drilling in the T3 Expansion Project has led to two additional discoveries, A1 and A4, while regional drilling at the T20 Exploration Project has also returned interesting results at T4 and T23. MOD is completing a feasibility study at T3, which will benefit from a coarser grind size and an increased base case plant size, and a scoping study at T3 underground, both due for completion in Q119, while continuing its regional exploration programme.

MOD Resources - Discoveries made, exploration concept validated

Australia

MOD Resources Ltd. is a mineral exploration and production company. The Company is focused on prospecting licences southwest of the Central Kalahari National Park the area of the Botswana copper project.

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Mod Resources (MOD AU)

MOD Resources Supports Latest Sandfire Offer

Sandfire Resources Nl (SFR AU) has reloaded with an implied Scheme consideration of A$0.45 for Mod Resources (MOD AU), a 45% premium to the closing...

David Blennerhassett

MOD Resources - Discoveries made, exploration concept validated

MOD Resources (MOD) is a copper-silver exploration and development company with a substantial ground holding in the Kalahari Copper Belt, Botswana....

Edison Investment Research

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