Mozambique – Kenmare Resources, the operator of the Moma titanium minerals mine, in Mozambique, has received a revised, nonbinding proposal from Australian mineral sands miner Iluka Resources regarding the proposed buyout of the Dublin-based miner.
In its proposal, Iluka offered Kenmare shareholders 0.016 Iluka shares for each Kenmare share.
The proposed deal is subject to a significant number of pre-conditions, including the receipt by Iluka of such consents and determinations from relevant authorities and the Mozambique government as may be required to effect the possible acquisition; written determination from the Mozambican tax authority of the amount of any capital gains tax; written confirmation from Kenmare’s lenders on the specific terms of repayment of Kenmare’s outstanding indebtedness upon a change of control of Kenmare; receipt of irrevocable undertakings of support from the board of Kenmare and certain Kenmare institutional shareholders; and final approval from the board of Iluka.
The Kenmare board said in a statement that it has reviewed the proposal carefully and has considered Kenmare’s financial position, prevailing market conditions and the terms of the debt amendment. Kenmare believes that it is in Kenmare’s shareholders’ and other stakeholders’ interests for Kenmare to continue to work with Iluka towards satisfaction of the pre-conditions to Iluka’s proposal.