Mineral Resources (MinRes) has executed a binding Asset and Share Sale Agreement with a garnet miner based in Perth, Western Australia.
Under the agreement, MinRes will acquire Resource Development Group Limited’s (RDG) assets.
This includes the Lucky Bay garnet mine following creditor approval of MinRes’ proposed Deed of Company Arrangement (DOCA) proposal on 1 September.
Details of MinRes’ DOCA proposal were contained in the RDG administrators’ report to creditors as notified in an announcement on 25 August.
On 28 July, it was revealed that RDG (a business which MinRes is a secured creditor of and holds 64.3 per cent of its issued shares) would be entering voluntary administration.
MinRes had already been reviewing its arrangements with RDG including a request from the miner for a cash advance against existing loan arrangements to meet operating expenses.
The MinRes Board determined not to provide these arrangements at the time.
Now, MinRes will be assessing options to best realise value from the assets for RDG’s shareholders.
“The Board and I sought to ensure that MinRes shareholders could realise some value from their investment, and that there were no perceived conflicts in our decisions on RDG’s future,” Bundey said.
“I want to thank RDG’s employees for continuing to operate safely and productively during this process.”
All decisions relating to RDG and the acquisition have been undertaken by the MinRes Board.
MinRes Managing Director, Chris Ellison, and nominees on the RDG Board were not involved in deliberations.
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