Fenix Resources is set to make an all-script takeover offer to acquire 100 per cent of CZR Resources.
The bid has been unanimously recommended by CZR shareholders, with controlling shareholder Creasy Group providing Fenix with an intention statement confirming its acceptance in absence of a superior proposal.
Fenix expects its vertically integrated mine-to-port business model to have high value-creative implications for CZR shareholders when deployed at the Robe Mesa iron ore project in Western Australia.
“The acquisition of CZR is a transformational event for Fenix,” Fenix executive chairman John Welborn said. “CZR’s Robe Mesa iron ore project is one of the last independent large-scale high-quality iron ore development assets in the Pilbara.
“Fenix’s market-leading port, logistics and mining capabilities are ideally suited to rapidly and efficiently advance Robe Mesa into production and maximise value creation for our combined shareholder group.”
CZR shareholders will be entitled to receive 0.85 Fenix shares for every CZR share at an implied value of $0.26.
The acquisition is set to position Fenix as a leading, fully integrated, large-scale iron ore producer and logistics provider in WA.
“Fenix is on track to triple iron ore production during 2025 via the expansion of our mid-west iron ore mining portfolio and using our unique integrated mining, logistics and port infrastructure model,” Welborn said.
“The addition of CZR’s assets will expand out portfolio to include interests in projects with mineral resources of approximately 140 million tonnes of iron ore.”
CZR managing director Stefan Murphy said the board is excited to recommend the transaction to its shareholders.
“I am confident that under Fenix’s leadership Robe Mesa will be successfully developed and operated in a highly profitable way for shareholders of Fenix and CZR,” Murphy said.
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