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Min Res getting cashed up - as they are a major shareholder in WC8 I’m expecting a take out - see their announcement below

ASX ANNOUNCEMENT

MINERAL RESOURCES

5 June 2024

MinRes sells minority stake in Onslow Iron Haul Road

Mineral Resources Limited (ASX: MIN) (MinRes or Company) is pleased to announce it has entered into a binding agreement with Morgan Stanley Infrastructure Partners (MSIP) for the sale of a 49% interest in the Onslow Iron project's dedicated haul road (Onslow Haul Road) for total expected proceeds of $1.3 billion.

The Onslow Haul Road is a key component of an innovative transportation infrastructure solution developed by MinRes which has unlocked stranded iron ore deposits in the West Pilbara region of Western Australia.

The 150 kilometre dual lane road, which links the Ken's Bore mine site to the Port of Ashburton, will be fully sealed, fenced and equipped with fibre optic cabling to support the operation of MinRes' autonomous road trains.

MinRes will retain majority ownership and exclusive rights to use, operate and maintain the Onslow Haul Road.

The arrangement will ensure seamless mine-to-ship delivery of Onslow Iron product to customers.

The transaction vehicle (Road Trust) will receive a life-of-mine CPl-adjusted tolling fee per tonne of iron ore transported through the Onslow Haul Road of $8.041 (100% basis), capped at 40 million wet metric tonnes per annum (Mtpa). The tolling fee will be reset at a reduced rate after 30 years. Any tolling payments for volumes above 40Mpa will be fully owned by Minkes.

The transaction values the Onslow Haul Road (100%) at $2.7 billion, representing a 9.4 times pro-forma EBITDA' multiple based on the 35Mpa nameplate capacity.

The gross proceeds are payable in cash and comprise upfront consideration of $1.1 billion and a deferred consideration of $200 million that is subject to achieving a 35Mpa run rate for any quarter before 30 June

2026.

MinRes expects total after tax net cash proceeds of $1.2 billion.

MinRes engaged with MSIP following a competitive process involving leading global infrastructure investors.

Completion is expected in the second half of this calendar year, subject to finalisation of project conditions and Foreign Investment Review Board approval. MinRes has entered into a US$750 million undrawn facility with J.P. Morgan that is expected to be cancelled upon or before the transaction's completion.

MinRes has a track record of delivering strong shareholder returns, driven by its ability to identify and develop high return on investment (ROIC) projects and recycling the Company's capital.

The introduction of a new partner at an attractive cost of capital is consistent with a focus on long-term shareholder value creation and agile approach to capital management to:

Maintain a strong balance sheet to support MinRes' industry-leading growth.

Release capital to redeploy toward projects that meet a post-tax ROIC target of more than 20%.

• Access new pools of capital that optimise capital allocation and returns.

Min Res - getting cashed up