JOHANNESBURG (miningweekly.com) – The board of ASX-listed Kasbah Resources has unanimously recommended that all shareholders vote in favour of TSX-V-listed Asian Mineral Resources’ (AMR's) intention to acquire the Australian miner.

The companies announced on Thursday that they had entered into a scheme implementation agreement stipulating that AMR would acquire all of Kasbah’s ordinary outstanding shares.

“We are very pleased to be joining forces with AMR as we move towards the creation of a solid and diversified base metals platform,” said Kasbah chairperson Dr Rodney Marston, adding that the transaction would provide immediate value creation for Kasbah shareholders. It also positions the combined company well in its pursuit of project financing and construction of Kasbah’s Achmmach tin project, in Morocco.

Kasbah, which owns 75% of Achmmach, recently announced that a definitive feasibility study (DFS) was under way at the tin project, supporting a two-stage development plan.

The companies added that, once AMR’s acquisition of Kasbah was complete, it would forge a clear path to the start of construction at Achmmach, providing upside opportunities for both companies’ shareholders with exposure to a diversified asset base and future growth.

“Moreover, the transaction provides a unique opportunity to leverage off AMR’s skilled operations and management team and their experience in commercialising and operating an underground base metals operation in a challenging jurisdiction,” said Marston.

He noted that adding AMR’s Vietnam-based Ban Phuc nickel mine to the portfolio would also allow for geographical and commodity diversification, as there are significant exploration targets close to Ban Phuc that could strengthen the combined company’s position to take advantage of the nickel price and generate cash flow.

AMR chairperson Jim Askew noted that his company had “done an excellent job” in bringing Ban Phuc to production under a challenging price environment and that the company was excited to team up with a proven explorer and resource developer like Kasbah and to transfer AMR’s operating experience to the successful development of the Achmmach project.

He added that, following a successful DFS, the combined company would prioritise project financing options for Achmmach.

Askew, who is currently chairperson of AMR’s board of directors, will remain chairperson of the board of the combined company. This board will comprise up to seven directors, two of whom will be nominated by Kasbah and two of whom will be independent directors.

AMR CEO Evan Spencer will remain CEO of the combined company.