Miracle Iron to Acquire Strike Resources' Paulsens East Project and CZR's Robe Mesa
Miracle Iron, led by Frank Yin, is set to acquire the Paulsens East project from Strike Resources and the Robe Mesa project from CZR Resources, amidst a rising iron ore market. Perth-based firm, Miracle Iron, has agreed to acquire Strike Resources' Paulsens East Project and CZR's Robe Mesa for $20.5 million. This deal comes amidst a surge in Chinese buyers' interest in assets in the Pilbara. The deal still requires approval from the Foreign Investment Review Board. The acquisition could accelerate returns for shareholders, significantly earlier than anticipated. CZr Resources, which holds a 44 percent stake in the company, may also be left with its Croydon gold and Buddadoo vanadium-titanium projects if successful.
Published : 4 months ago by Geeta Pillai in World
In an intriguing turn of events, Perth-based firm Miracle Iron, steered by Frank Yin, has inked a deal to acquire Paulsens East project from Strike Resources for $20.5 million. This comes amidst a surge in Chinese buyers’ interest in assets ripe for development in the Pilbara. An outcome that accelerates returns for CZR shareholders, significantly earlier than anticipated.
Miracle Iron, the manifestation of two merged entities, plans to add another feather to its cap by acquiring Robe Mesa project from CZR Resources. Situated adjacent to Rio Tinto’s Mesa F deposit, Robe Mesa had previously piqued the interest of the mining giant. However, Rio Tinto opted for a shift in focus towards higher-grade deposits, aligning with their decarbonisation strategy.
Notably, Yandal Investments, under the stewardship of Mr. Creasy, holds a commanding 44 percent stake in CZR, virtually making it a subsidiary. Related parties account for an additional 8.76 percent stake. The CZR board, including Mr. Creasy’s wife, Annie Guo, has expressed support for the sale to Miracle Iron. Intriguingly, the discourse hints at the possibility that Yandal and other related entities may not be granted voting rights on the deal. Mr. Creasy is concurrently negotiating the sale of his 15 percent interest in Robe Mesa to Miracle Iron.
A feasibility study conducted pegs the production cost for Robe Mesa at a hefty $109 million. Miracle Iron’s offer equates to roughly 43 cents per CZR share. This announcement catalysed a rise in CZR’s stock price, climbing from 21 cents to 30 cents. The deal, however, still hangs in the balance as it requires the green light from the Foreign Investment Review Board.
Assuming the deal’s successful closure, CZR would be left with its Croydon gold and Buddadoo vanadium-titanium projects. This transaction unfolds against the backdrop of a booming iron ore market, propelled by China’s economic stimulus measures and support for the housing market.