Corrs advises Straits Resources on Hillgrove Antimony-Gold sale
Corrs Chambers Westgarth is advising ASX-listed Straits Resources Limited (ASX: SRQ) (Straits) on the sale of its Hillgrove Antimony-Gold Project to Court Resources WA Pty Ltd (proposed to be renamed Ancoa NL) for a purchase price of A$40-million in cash and shares.
Straits is a mining and exploration company focussed on copper and gold in Australia and Asia.
Under the acquisition, Straits will receive A$20-million of the purchase price in cash, and the balance in shares (both components subject to a successful completion of Ancoa’s proposed initial public offering (IPO)).
Corrs partners Bruce Adkins and Stephanie Daveson said: “The deal confirms the demand for rare metals is still hot and it is hoped that Ancoa’s refloat of the Hillgrove asset will withstand volatile equity markets. Getting this deal to signing involved a number of reasonably complex issues that arise when a listed entity seeks to undertake an asset sale to another entity that proposes to refloat the asset, including a raft of issues arising under the ASX Listing Rules, and negotiating a mutually acceptable completion and payment timetable that was fair and reasonable for Straits shareholders.”
The deal takes advantage of a recovery in the price of antimony and gold and tightening supplies of the metal, which is used in fire retardants, semiconductors and alloys.
In a recent statement, Straits’ CEO Milan Jerkovic said that: “The divestment of the Hillgrove project has been a published strategic objective for Straits,” adding that the “consideration composition would not only ensure a significant cash injection into the company, but will provide leverage to future operational success through the shareholding in Ancoa.”
Ancoa’s IPO prospectus is expected to be lodged with ASIC on or about 3 October 2011.
For further information, contact Kate Piper on +61 2 9210 6854 or Claire Linton-Evans on +61 2 9210 6481.