JOHANNESBURG (miningweekly.com) – Australian mineral sands miner Iluka Resources has confirmed that it is considering an offer for Aim-listed Sierra Rutile, noting that discussions are at an advanced stage.
Iluka revealed the potential deal in a request for a trading halt on the ASX on Friday, stating that confidentially had been lost in relation to its discussions with Sierra Rutile.
The Australia-based miner intends to make an all-cash bid and Sierra Rutile has confirmed separately that Iluka plans an offer of 36p an ordinary share.
Sierra Rutile, which owns rutile assets in Sierra Leone, traded at 38p a share on the London market on Friday morning, giving it a market capitalisation of about £225-million ($297-million).
Sierra Rutile is ramping up a new mine, Gangama, in Sierra Leone, which is expected to achieve steady-state production in the third quarter of this year. The new mine will help increase production to between 120 000 t and 135 000 t this year.
Iluka is a major producer of zircon and the largest producer of the high-grade titanium dioxide products of rutile and synthetic rutile, with operations in Australia and the US.
Iluka expects to make an announcement regarding the takeover on or before Tuesday.
Edited by: Creamer Media Reporter
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