PERTH (miningweekly.com) – Botswana-focused MOD Resources went into a trading halt on the ASX on Monday after Australian copper miner Sandfire Resources confirmed that it had approached the junior to express its interest in exploring a potential merger.
Responding to media reports overnight, Sandfire said that the potential combination had been on the basis of A$0.38 a MOD share.
The miner noted that any potential transaction would be conditional upon the completion of a due diligence, the recommendation of the MOD board, and the execution of binding agreements.
MOD shares were last trading at A$0.22 a share.
ASX- and LSE-listed MOD owns the T3 copper project, in Botswana, where a prefeasibility study estimated that the project would require a capital investment of $155-million to develop an openpit operation and plant with a 2.5-million-tonne-a-year throughput capacity, producing 23 000 t/y copper and 690 000 oz/y of silver in concentrate.
A feasibility study is due in the first quarter of this year.