Hancock proves successful in Riversdale bid
PERTH (miningweekly.com) – Australian iron-ore major Hancock Prospecting has gained a shareholding of more than 85% in Canadian takeover target Riversdale Resources, triggering an increased offer price.
Hancock earlier this week increased its cash offer for the unlisted Canadian coal company from A$2.20 a share to A$2.70 a share, conditional on the company achieving an interest of more than 85% in Riversdale.
While the increased offer was deemed both fair and reasonable by Riversdale’s independent expert, the company maintained advice that shareholders reject the offer, citing uncertainty around the intentions of its largest shareholder RCF, which holds a 47.87% interest in the takeover target.
Hancock on Wednesday announced that RCF had now accepted the increased offer.
Riversdale’s main holding is the Grassy Mountain hard coking coal project, which is expected to produce some 93-million tonnes of coal over its proposed 24-year mine life, with first production flagged for 2021.
The project is estimated to host a measured and indicated resource of some 195-million tonnes.
Hancock chairperson Gina Rinehart told shareholders that the company had been hunting for a metallurgical coal opportunity to complement its iron-ore projects, with both commodities being critical for steel making.
“Grassy Mountain is a good strategic fit for Hancock that adds to our existing iron-ore interests in Hope Downs, Roy Hill and Atlas Iron,” she said.
“We are very pleased to have been able to achieve control, and look forward to working with Riversdale’s employees, the Canadian federal and Alberta governments, First Nations and the local ommunity to progress this outstanding project,” said Hancock CEO Garry Korte.
The offer period has now been automatically extended by 14 days, and will close on May 21.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
