THE BOURSE WHISPERER: Rox Resources (ASX: RXL) announced it had received another offer in regards to the company’s interest in the Reward zinc-lead project in the Northern Territory.
Rox recived an opening bid for the Reward project in July 2016 from IMI Zinc Exploration Pty Ltd (IZE), a wholly owned subsidiary of IM Medical Limited (ASX: IMI) (IMI), to acquire Rox’s interest in the project $14.8 million..
The IMI offer comprised $2 million payable in cash and the issue of IMI shares valued at $12.8 million and was subject to a 30 day exclusivity period to allow Rox to complete due diligence.
This offer remains open for acceptance by Rox until 17 August 2016.
Just before heading home from work last Friday, Rox received an unsolicited offer from Marindi Metals Ltd (ASX: MZN) for its Reward project interest.
The new offer comes in the form of a binding Heads of Agreement for a purported value of $16 million, comprising cash of $6 million, and Marindi securities to a purported value of $10 million issuable in two tranches – $4 million at completion, and 240 million Marindi redeemable convertible preference shares with a three year term converting at $0.025, or redeemable by Marindi at its election by paying Rox $6 million plus 10 per cent per annum accrued interest.
Of course, the new offer has some strings attached and is conditional upon a number of matters, including completion of a fundraising by Marindi, and unless accepted or extended, was due to expire at the close of business of the day of the announcement.
“The company has appointed legal and financial advisors to properly assess the New Offer and determine the most appropriate path forward to maximise value for Rox shareholders,” Rox Resources said in its ASX announcement.
“Rox will keep the market informed as developments arise.”