The Panda Hill Niobium Project is located in the Mbeya region, near the borders with Zambia and Malawi, approximately 650 km west of the capital Dar es Salaam
ASX-listed Cradle Resources has received an all-cash offer from Tremont Investments to acquire all of the issued shares of Cradle Resources for A$0.33 per share.

Tremont Investments is its 50/50 joint venture partner in the Panda Hill niobium project.

Cradle Resources says the offer values the company at about A$55 million and that the price of A$0.33 per share represents a 43.5% premium to the last closing price and a 37.3% premium to the 20 day VWAP of its shares on the ASX.

Tremont Investment is backed by Denham Capital, an energy and resources private equity firm.

The transaction will increase Tremont Investments’ effective interest ownership in the Panda Hill niobium project from 59.8% to 100%.

The cash offer enables Cradle Resources shareholders to realise immediate value for their shares and reflects the size, strategic nature and development potential of the Panda Hill niobium project, said Cradle Resources.

Cradle Resources chairman Ian Middlemas said: “This is a compelling proposal and provides Cradle Resources shareholders with the opportunity to realise a significant premium.

“The all-cash offer of A$0.33 per Cradle share provides the company’s shareholders with certainty of value and an opportunity to realise their investment in full for cash.

“Tremont Resources’ management team shares our vision for the development of the Panda Hill niobium project, and as such, we believe they are the right long-term partner for future customers, employees and other stakeholders in this capital intensive project.”

The directors of Cradle Resources unanimously recommend that the company’s shareholders vote in favour of the scheme in the absence of a superior proposal and subject to the independent expert concluding that the scheme is in the best interests of shareholders.

*Picture shows niobium core samples