4th Sep 2019 13:17
(Alliance News) - MOD Resources Ltd reported a widened interim loss on Wednesday as the miner prepared for its takeover by Sandfire Resources NL.
In the six months to June 30, the copper exploration and development company recorded a pretax loss of AUD5.3 million, about GBP2.9 million, double the AUD2.3 million, about GBP1.3 million, loss recorded the year before.
MOD Resources' administrative expenses increased to AUD4.6 million from AUD2.0 million the year before.
"Following on from a very active 2018, the first half of 2019 continued to see MOD Resources deliver on its commitments, including the upgrade of the T3 open pit ore reserve to 34.4 million tonnes at 1.0% copper and 13.2 grammes per tonne silver, containing 342,700 tonnes of copper and 14.6 million ounces of silver," the company said.
"MOD also released the T3 Copper Project Feasibility Study which confirmed outstanding project economics," the company added.
In June, the Botswana-focused copper miner agreed to a AUD167 million, or GBP91.1 million, takeover offer from Australian copper-gold producer Sandfire Resources.
MOD Resources believes the acquisition represents an attractive premium for shareholders, while providing a funding solution for the development of T3 Project and retaining exposure to company's significant exploration potential.
Sandfire Resources will acquire 100% of MOD Resources by way of a scheme of arrangement, valued at AUD0.45 per MOD share. The consideration represented a premium of 45% to the previous session's closing price of AUD0.310 per share.
MOD shareholders will either be able to elect a scrip consideration of 0.0664 Sandfire shares for every 1 MOD share held or cash consideration of AUD0.45 per share. The total cash consideration payable to MOD shareholders who elect the cash option is capped at AUD41.6 million.
Shares in MOD Resources were untraded Wednesday but last closed at 22.75 pence each.
Related Shares:
MOD.L