Coda Minerals and Torrens Mining to merge

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Coda Minerals and Torrens Mining are merging to form a leading base and precious metals exploration company.

The new company will be focused on South Australia’s Elizabeth Creek Copper Project.

Coda will make an off-market takeover offer to acquire Torrens with 0.23 new Coda shares offered for every 1 Torrens share held.

As a result, and if the offer is successful, Coda will consolidate 100% ownership of the Elizabeth Creek Copper Project via the acquisition of Torrens’ current 30% joint venture interest.

Adertisement

Torrens acquired the Elizabeth Creek Project in 2015 and brought Coda into the Project in 2017 via a farm-in joint venture.

Located 35 km south-east of Woomera and 135 km north-west of Port Augusta in South Australia, the Project currently covers 739 km2 in the Olympic Dam Copper Province, Australia’s most productive copper belt.

“The combination with Torrens provides a compelling opportunity to create value for both sets of shareholders by unlocking important synergies in the exploration and development of our core asset, the Elizabeth Creek Copper Project in South Australia,” said Chief Executive Officer of Coda, Chris Stevens in the ASX announcement.

“The Offer provides an immediate premium of over 30%, while the consolidation of 100% ownership of Elizabeth Creek in a single company represents a logical and very positive next step in the project’s evolution.

“We look forward to welcoming Torrens shareholders to Coda’s register and for them to continue to benefit from further progress at Elizabeth Creek as we continue to progress the project through the next exciting phase of exploration and development in 2022.”

After the offer is fully implemented, Coda expects to have an implied market capitalization of around A$109 million.

According to Steve Shedden, Managing Director of Torrens, the transaction will provide Torrens’ shareholders with the opportunity to become shareholders of a company with significantly increased scale and a clear focus on the Elizabeth Creek Copper Project.

“By accepting the Offer, Torrens’ shareholders will continue to have a material interest in the upside associated with Elizabeth Creek, while at the same time mitigating funding risks and gaining exposure to a more diversified exploration portfolio,” said Mr Shedden.

“Torrens ‘shareholders will retain exposure to the company’s existing gold assets in Victoria and NSW and its tenement applications in Papua New Guinea, while benefiting from Coda’s strong balance sheet and also gaining exposure to its recently acquired Cameron River copper-gold project in the Mt Isa district of North Queensland.

“Torrens’ Board believes that this transaction is in the best interests of Torrens and unanimously recommends it to our shareholders, in the absence of a superior proposal.”

Image credit: https://www.codaminerals.com/projects/