The following was edited to keep the story relevant to I/O.
I’m surprised that China is still interested in owning I/O deposits in Oz.
Surprised that Rio is mentioned as a potential buyer?
Who might buy RHK? Anyone as it stands. Lets keep in mind RHK was reported as being bigger than all the small deposits put together? (SM road show.)
GLTA
It looks like an opportunistic b
uy?I expect much more for RHK.
Billionaire Creasy to boost cash coffers with iron oresale
Jan 11, 2024 – 5.51pm
Billionaire prospector Mark Creasy is set for another windfall after CZR Resources unveiled a deal to sell a long-stranded iron ore project to Chinese interests for $102 million.
The deal involving Creasy-backed CZR and Miracle Iron Resources comes as strong iron ore prices sparkrenewed interest in smaller mining projects.
CZR is selling its 85 per cent stake in the Robe Mesa project in the Pilbara that is slated to produce 3.5 million tonnes of iron ore a year over its first four years of operation, with potential for that to riseto 5 million tonnes based on access to export facilities.
The Robe Mesa deal comes hot on the heels of Strike Resources, which offered CZR an export pathway through a port joint venture with logistics player CSL, agreeing to sell its nearby Paulsens East project to privately owned Miracle Iron for $20.5 million.
The Perth-headquartered Miracle Iron is led by Frank Yin, who has a long track record of Sino-Australia ventures in the mining sector.
The Robe Mesa project sits next door to Rio Tinto’s Mesa F deposit and was considered a potential Rio target before the iron ore giant optedto focus on higher-grade deposits as part of its decarbonisation strategy.
The CZR board, which includes Mr Creasy’s wife Annie Guo, has unanimously backed the sale of Robe Mesa to Miracle Iron.
CZR said its initial discussions with the ASX indicated major shareholder Yandal and other Creasy-related entities will likely be ineligible to vote on the deal.
Mr Creasy is in separate discussions to sell his 15 per cent minority interest in the Robe Mesa project to Miracle Iron.
A feasibility study released last October suggested it would cost $109 million to bring Robe Mesa into production.
Miracle Iron’s cash offer is equal to about 43¢ per CZR share on issue excluding costs and taxes.
The stock, trading at 21¢ before it went into a trading halt on December 28, jumped to 30¢ on Thursday.
CZR managing director Stefan Murphy said the all-cash sale would unlock substantial value for shareholders in a “very timely fashion”. The company finished the September quarter with $1.3 million in cash.
which is subject to a tick from the Foreign Investment Review Board, goes ahead.
CZR told investors Miracle Iron was closely linked to parent company Shenzhen Naao Jianglan Investment, which is the investment arm of Chinese conglomerate Xinjiang Jiangna Mining Corporation.
The strengthin the iron ore price
, linked to optimism around Beijing boosting economic stimulus and the People’s Bank of China supporting the housing market by offering low-cost financing, has createda wave of interest in iron ore projects across WA, the Northern Territory and South Australia.
