Photo by: Reuters
PERTH (miningweekly.com) – Iron-ore developer Flinders Mines is considering its options for the Pilbara iron-ore project (PIOP), in Western Australia, after shareholders rejected a A$65-million acquisition offer from New Zealand-based Todd Corporation.
In May this year, the two companies inked an option agreement which would have seen Flinders receive an initial A$10-million up-front in consideration for the transaction and a further A$55-million if Todd exercised its options to acquire the PIOP.
While the Foreign Investment Review Board approved the transaction, Flinders shareholders on Thursday voted against it.
“Our shareholders have considered the option proposal with the response clearly illustrating a rejection of the terms of the agreement,” said Flinders chairperson Robert Kennedy.
“[The] board intends to use the results of this process and feedback received from the shareholder base to deliver an outcome that is attractive and acceptable to all our investors,” he added.
The company was expected to consider further work that would be required at PIOP to continue to maintain the tenements in good standing.
Meanwhile, an alliance agreement with Todd remained in effect until December this year, and Flinders intended to have further dialogue with Todd to explore whether there was any opportunity to move the concept forward on a mutually acceptable basis.