Signs of life in IGO’s bid for Western AreasAnthony Macdonald,
Yolanda Redrup and
Kanika SoodDec 6, 2021 – 9.34pm
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There are signs of life in IGO’s $1 billion odd bid for nickel miner Western Areas.
IGO managing director and chief executive Peter Bradford. Peter de Kruijff
To recap, IGO lobbed a scrip-based deal in mid-August, won due diligence a month later and as at mid-November both companies’ chairs did not have much to report on the offer’s progress at their annual general meetings (AGMs).
In all, shareholders in both companies have now waited for nearly four months for IGO to make a binding offer.
Street Talk hears both camps have renewed their efforts in recent weeks, as they push to get it done before the holidays.
IGO is still understood to be keen on Western Areas, even though the two companies are taking their sweet time in reaching an agreement. IGO mines lithium, nickel, cobalt and copper, while Western Areas is focused on nickel.
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Some watchers expected IGO and Western Areas to break the silence in a week or so.
But then again, if the share prices are anything to go by, that’s what the market has been expecting for a few weeks now. (Western Areas shares have climbed over 19 per cent from $2.48 before the bid to $2.96 at Monday’s close).
The big question now is what will IGO’s binding offer look like. Western Areas is understood to have needed some warming up to the idea of an all/mostly scrip and low/no cash offer.
IGO’s was expected to take a closer look at Western Areas’ new Odysseus mine during the due diligence.
Odysseus is slated to produce its first nickel concentrate next year, and fits the production profile of IGO’s maturing Nova asset.
