The West..Fenix Resources to acquire CZR Resources for $71m...

The West..

Fenix Resources to acquire CZR Resources for $71m after FIRB delays kill $102m Miracle Iron deal

Adrian Rauso|Mining

Tue, 25 February 2025 9:10AM

Mark Creasy has cleared the way for Fenix Resources to absorb his iron ore junior that was left in the lurch by the Foreign Investment Review Board for more than a year.

Mr Creasy is the major shareholder of CZR Resources, which since early last year had been waiting on the green light from FIRB to sell its majority stake in the Robe Mesa iron ore project for $102m to Miracle Iron.

Miracle Iron is controlled by Chinese-Australian businessman Chuanshui (Frank) Yin and is reportedly linked to Chinese conglomerate XinJiang Jiangna Mining Corporation.

Fenix has now dangled 85 per cent of its stock to acquire all of CZR at an implied value of 26.2¢ per CZR share.

This will increase to 98 per cent of Fenix if 75 per cent of the takeover target’s shares fold into the offer by March 21. The maximum offer puts a roughly $71 million price tag on CZR.

Mr Creasy, who controls more than 50 per cent of CZR, has backed the proposal tabled by John Welborn’s Fenix — a small-scale iron ore producer in the Mid West region.

CZR on Tuesday confirmed it killed the Miracle deal due to FIRB’s continuous delays.

“Further to CZR’s announcement on 24 January 2025, the condition precedent relating to Foreign Investment Review Board approval remains outstanding,” the company stated.

“Due to the ongoing uncertainty associated with FIRB approval and the transaction as a whole which has been delayed over 12 months since the transaction was announced, CZR considers that it is no longer in the best interests of shareholders to continue with the transaction.”

CZR’s flagship Robe Mesa project in the Pilbara neighbours Rio Tinto’s Mesa F deposit. CZR owns 85 per cent of Robe Mesa and Mr Creasy directly holds the other 15 per cent..

Mr Welborn said the new deal for Robe Mesa is “transformational” for Fenix, giving it a foothold in the iron ore heartland of WA.

But the transaction has already caused drama.

The ASX quizzed CZR why its shares jumped more than 45 per cent in the days leading up to the deal being announced. Its stock spiked from 16.5¢ on Thursday to 24¢ by Monday’s close on the back of no news.

CZR in response said it had been in discussions with Fenix about a potential deal since Christmas Eve but had no reason to believe those confidential discussions had leaked.