ASX-listed Mineral Resources Limited (MRL) has completed the restructure of its noncore manganese assets, as part of a transaction with fellow-listed Resource Development Group (RDG).
RDG has acquired a 100% interest in manganese tenements, Ant Hill and Sunday Hill, in the Pilbara, from MRL’s wholly-owned subsidiary Auvex Resources.
In exchange, MRL has been issued with about 1.8-billion fully paid ordinary shares of RDG, which equates to 75% of the company’s total issued capital on a fully diluted basis.
To this end, MRL has appointed Mike Grey, Mark Wilson and Paul Brown to RDG’s board, replacing directors Gary Reid and Ivan Ruefli, who resigned with immediate effect.
Reid will continue his role as director of RDG’s subsidiary Central Systems, while Andrew Ellison remains RDG’s MD.
Because RDG was co-founded by Ellison, the brother of MRL MD Chris Ellison, Chris recused himself from all MRL board discussions relating to the transaction with RDG.
MRL chairperson Peter Wade says the transaction will allow the company to realise value from the noncore manganese assets, while preserving long-term optionality.
“We will support RDG in its aspirations to grow the volume and value of project work within the mining, energy and infrastructure sectors at a level that is complementary to MRL’s own contracting and mining services focus,” he adds.