PERTH (miningweekly.com) – The Supreme Court of Western Australia has approved ASX-listed Mallee Resources' plans to acquire the Avebury nickel sulphide project, in Tasmania.
Mallee earlier this year unveiled a deed of company arrangement (DOCA) to acquire Allegiance Mining, which has gone into receivership. Allegiance owns the Avebury mining licence, exploration licence, the underground mine, processing plant, mine infrastructure and other associated assets.
Under the DOCA, Mallee has offered to acquire Allegiance for A$85.9-million in a combination of cash and shares, and would also reimburse an estimated A$23.2-million in expenditure incurred in the development of the Avebury project during the DOCA term.
The Deed Administrators have now obtained leave to transfer all of the existing shares in Allegiance to Mallee or its nominee upon effectuation of the DOCA.
“This is an excellent outcome. Special thanks must go to our legal advisers who worked hard with our team to overcome challenges and navigate the legal proceedings to a successful conclusion. I look forward to seeing shareholders at our extraordinary general meeting (EGM) and completing the acquisition of Allegiance,” said Mallee MD John Lamb.
Completion of the acquisition under the DOCA is subject to shareholder approval at the Mallee EGM to be held on June 29.
Avebury is currently estimated to host a mineral resource of 29.3-million tonnes, grading 0.9% nickel and 229 parts per million cobalt. The project has been on care and maintenance since 2008, owing to the onset of the global financial crisis and the subsequent fall in nickel prices.
The project was acquired by MMG from Oz Minerals in 2009, and subsequently sold to Dundas Mining in 2016. Dundas appointed receivers and administrators in late 2021 in relation to Dundas Mining and its related parties, which included Allegiance.