PERTH (miningweekly.com) – ASX-listed Mineral Resources’ (MinRes’) off-market takeover offer for its joint venture (JV) partner ASX-listed Norwest Energy opened last week.

Under the terms of the offer, Norwest shareholders will receive one fully paid MinRes share for every 1 367 Norwest shares held, implying a value of 6c a Norwest share.

The offer does not have a minimum acceptance condition and is currently scheduled to close on February 6.

Norwest’s principal asset is a non-operating interest in onshore Perth basin exploration permits EP 368, in which it holds a 20% interest, and EP 426, in which it holds a 22.22% interest. MinRes and its subsidiaries are the permit operators and owners of the remaining interest in EP 368 and EP 426.

“This offer is a no-brainer for Norwest shareholders – it’s a unique opportunity to join our MinRes family and be part of the next chapter in our significant growth,” said MinRes MD Chris Ellison.

“Previous MinRes scrip-based offers have proven to be a boon for accepting participants – with total shareholder returns of over 25% per annum delivered for more than a decade. Those who rejected similar offers have missed out.

“The offer enables Norwest shareholders to participate in the future success of MinRes – including dividends – delivered by our portfolio of mining services, lithium, iron-ore and energy operations.

“MinRes’ offer means Norwest shareholders retain the Lockyer Deep gas project but will no longer be exposed to funding and development uncertainties associated with necessary appraisal drilling and development.

“We are full steam ahead on developing these assets – we have a fully-funded and significant programme of exploration, appraisal and development work underway for Lockyer Deep and our other Perth basin assets,” said Ellison.

“This scrip-based offer for our JV partner Norwest will consolidate Lockyer Deep’s project ownership and provide Norwest shareholders with exposure to a bigger prize. It is also a natural progression that can create lasting value for both groups of shareholders under the MinRes ownership umbrella.

“This offer is the natural fit for Norwest shareholders. I am pleased that our offer is now open for acceptance and am excited to welcome you all as MinRes shareholders.”

MinRes currently holds a 19.9% interest in Norwest.

MinRes last week spent A$69.7-million on a 16.35% stake in takeover target Warrego Energy which holds exploration acreage in the Perth basin, including the West Erregulla discovery, and adjacent to the EP 368 permit.