PERTH (miningweekly.com) − The proposed A$20,7-million Mount Weld deal, between ASX-listed Forge Resources and fellow-listed rare-earths miner Lynas, has received the nod from an independent expert.

Lynas-appointed expert Grant Samuel has concluded that the proposed transaction was “fair and reasonable” to shareholders in absence of a superior proposal.

Earlier this month, Forge agreed to buy and potentially develop the Crown polymetallic deposit, at the Mount Weld project, in Western Australia.

Forge would sub-lease the designated areas within the Mount Weld mining lease, including the Crown and Swan deposits, which contain tantalum, niobium and phosphates.

Under the agreement, Forge would pay Lynas A$20,7-million in cash, and a further seven-million options to acquire Forge shares over five years.

If the Crown and Swan deposits were developed, Lynas would also have the right to purchase any rare earths produced as by-products, at no associated development costs to Lynas.

The transaction was subject to among others, an independent expert’s review, shareholder approval, and the completion of a capital raising by Forge.

Forge told shareholders on Monday that both parties were now working through satisfying the remaining conditions precedent.

The Crown deposit is estimated to contain an indicated and inferred rare-metals resource of 37,7-million tons, at 1,07% niobium oxide, while the Swan deposit contains an indicated and inferred resource of 77-million tons, at 13,5% phosphate.

Forge was looking to undertake additional drilling, metallurgical test work, engineering studies and feasibility studies to test the commercial viability of the projects.

 

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.