Ann: Proposed issue of securities - CPN, page-23

Spare a thought for shareholders in Caspin Resources, the ASX-listed rump of the company that once owned a half stake in the sought-after West Musgrave nickel and copper project now owned by BHP.

Caspin hit the boards in late 2020 after Cassini Resources, the half-owner of West Musgrave, split out its other assets and folded into OZ Minerals, which already owned the other 50 per cent of the project. Importantly, Caspin was given the right to receive a potential payment from OZ Minerals if the company ever sold all or part of West Musgrave.

“The parties have entered into the contingent payment deed as an inducement for Cassini to enter into and proceed with the transaction contemplated by the Acquisition Scheme,” demerger documents circulated to Cassini shareholders in August 2020 read.

That payment topped out at $20 million. Compared to BHP’s $9.6 billion takeover of OZ Minerals, its small change. But Caspin’s entire market capitalisation is just $22.1 million – having fallen more than 62 per cent in the past 12 months alone. Clearly, a decent windfall for investors.

And Caspin shareholders were no doubt hoping for their long-awaited payment. On Monday, the Federal Court approved the scheme of arrangement that resulted in OZ Minerals becoming a wholly owned subsidiary of BHP in return for $28.25 per share in cash.

RELATED QUOTES

OZLOZ Minerals

$28.180 0.07%

1 year1 day

Apr 22Oct 22Apr 2316.00024.00032.000

Updated: Apr 17, 2023 – 11.17pm. Data is 20 mins delayed.

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BHPBHP Group

$46.610 0.34%

Apr 22Oct 22Apr 2336.00045.00054.000