CZR: CZR Board Unanimously Recommends Offer from RRJV

Key points

• RRJV offers $75 million cash for CZR's Robe Mesa Iron Ore Project
• CZR to retain its other non-Robe Mesa projects, including Ashburton Link, Croydon Gold, and Buddadoo
• CZR's largest shareholder, Mark Creasy, intends to vote in favor of the RRJV transaction

Full summary

CZR Resources Ltd (ASX:CZR) has announced that its Board has unanimously recommended the binding offer from North Mining Limited (an indirect wholly-owned subsidiary of Rio Tinto Limited), Robe River Mining Co Pty Ltd (an indirectly 60% owned subsidiary of Rio Tinto Limited and 40% owned by Mitsui Iron Ore Development) and Mitsui Iron Ore Development Pty Ltd (a wholly-owned subsidiary of Mitsui & Co Ltd) (together, the RRJV) to acquire CZR's interest in the Robe Mesa Iron Ore Project tenements for cash consideration of A$75 million. The CZR Board has determined that the RRJV transaction is a superior proposal compared to the previous Fenix Resources Ltd takeover offer, as the cash consideration represents a significant premium and will enable CZR to develop its retained project portfolio, including the Ashburton Link, Croydon Gold, Buddadoo, Shepherd's Well and Yarrie projects, without the need for dilutive capital raisings. CZR's largest shareholder, Mark Creasy, has provided a voting intention statement confirming that the Creasy Group intends to vote in favor of the RRJV transaction in the absence of a superior proposal.