Iron Mountain makes a play for JV partner
PERTH (miningweekly.com) – The share price of ASX-listed junior Red River Resources spiked by 40% on Thursday after the company received notice that fellow-listed Iron Mountain Mining would make an off-market bid.
Iron Mountain said that it was determined to make a cash and share offer for Red River, offering 1.5c in cash for every Red River share held, along with one fully paid share in Iron Mountain, for every six shares held in Red River.
No separate offer would be made for Red River’s options.
Iron Mountain said on Thursday that it was in the process of preparing a formal bidder's statement, which would be lodged shortly.
The proposed offer was subject to a number of conditions, including a minimum 50% acceptance condition and relevant regulatory approvals.
Iron Mountain Mining is a junior explorer focused on bauxite, iron-ore and gold projects in Australia. During 2012, the company undertook a programme of asset divesture to secure operating capital, selling off its Wandoo bauxite project and its Blythe magnetite project.
Iron Mountain was currently exploring for gold at its Golden Camel project, in Victoria.
Red River, in turn, was currently exploring for a range of metals, including tin, iron-ore, copper and platinum. The company holds a number of prospects in Western Australia, and shares the Miaree joint venture with Iron Mountain, where the two parties are exploring for iron-ore and gold.
Red River also holds a shareholding in the Wongan Hills project, along with Kingsgate Consolidated and Iron Mountain, where the parties were searching for gold, copper and iron-ore.
Red River’s shares were trading at a high of A$0.014 a share on Thursday.
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