Rox maintains validity of Teck deal

PERTH (miningweekly.com) – Junior explorer Rox Resources said on Tuesday it would “strongly defend” any legal action by fellow-listed Marindi Metals, maintaining the validity of an agreement to sell its interest in the Reward project to Canadian miner Teck Resources.

Marindi Metals on Monday warned of legal proceedings against Rox if the company did not complete the sale of its joint venture (JV) interest in the zinc and lead project, in the Northern Territory, to Marindi.

Rox in August accepted Marindi’s A$21-million offer for its 49% share in the Reward project; however, 51% project owner and JV partner Teck Resources had a pre-emptive right to match any offer for the stake.

Last month, the miner exercised that right, offering Rox a cash consideration of A$8-million, shares worth A$3.6-million, or alternatively A$2.6-million in cash, a three-year promissory note with a face value of A$5.25-million, and a deferred payment of A$3.75-million, payable upon the completion of a bankable feasibility study or the expiry of six years, whichever came first.

Marindi on Monday said that it did not accept that Teck had exercised its pre-emptive rights in the manner and timeframe required by Teck's JV agreement with Rox.

However, Rox on Tuesday maintained that Teck had validly exercised its pre-emptive right, adding that Marindi had always been aware that the Canadian miner could elect to do this.

Rox also said that it was disappointed with the steps being taken by Marindi, but that it would defend itself against any legal proceedings.

The Reward project has a mineral resource of 58-million tonnes, grading 12.7% lead and zinc at its Teena deposit, while the Myrtle deposit is estimated to host 44-million tonnes, grading 5% lead and zinc.