ASX-listed CZR Resources has entered into a binding agreement to sell its Robe Mesa iron-ore project to Miracle Iron Resources, with CZR retaining its Croydon and Buddadoo exploration assets.
CZR, in which Mark Creasy is a majority shareholder, will receive A$102-million for its 85% interest in Robe Mesa, representing a substantial premium to the company’s market capitalisation of about A$47-million.
Miracle Iron is based in Perth and is closely linked with its parent company, Shenzhen Naao Jianglan Investment, which is headquartered in China.
CZR’s board has recommended that shareholders support the transaction.
“This sale will unlock substantial value for CZR shareholders with a cash transaction in a very timely fashion.
“The sale price reflects not only the value we have created at Robe Mesa but also the significant potential of the project, ensuring CZR shareholders get appropriate value for the project.
“The transaction will also remove CZR’s funding and development risks associated with the project while delivering CZR a very substantial cash balance,” says MD Stefan Murphy.