Teck Australia has informed Rox Resources Limited that it has exercised its pre-emptive right to match Marandi Metals’ offer for the purchase of Rox’s minority interest in the Reward Zinc Project in the Northern Territory.
Rox’s Managing Director Ian Mullholland said the company was obliged to offer to sell its interest in the Reward Project to Teck, in accordance with the Earn-in and Joint Venture Agreement between the two companies.
“Monetising our interest in the Reward Project represents a successful outcome for our shareholders,” Mr Mulholland stated.
“This shows that the market was significantly under-valuing the project and validates our decision to sell. Rox will now review our strategic options with a focus on generating new growth and value opportunities.”
The terms under which Teck will acquire Rox’s interest in the Reward project are as follows:
- Cash of $8.0 million;
- Immediately tradeable, un-escrowed shares in any ASX or TSX listed company to a value of $3.6 million or, Alternatively $2.6million cash;
- A 3 year promissory note with a face value of $5.25; and
- A deferred payment of $3.75 million, payable on completion of a bankable feasibility study, or the expiry of 6 years, whichever comes first.
Located adjacent to the McArthur River zinc-lead mine, the Reward zinc-lead project is jointly owned by Rox (49%) and Teck Australia (51%).
The project has two main areas of focus, the Teena deposit located 8km due west of the McArthur River Zinc Mine, and the Myrtle deposit which is located 20km south of the McArthur River mine.