Australasian receives merger proposal from RDIThursday , 24 Jul...

Australasian receives merger proposal from RDI
Thursday , 24 Jul 2008


Key points:

ARH receives a merger proposal from unlisted company Resource Development International Ltd (RDI),

„h RDI is controlled by ARH major shareholder Professor Clive Palmer,

„h RDI proposes to control significant iron ore, nickel and energy interests, including iron ore entity with rights in excess of 20 billion tonnes,

„h RDI is currently finalising plans for a proposed A$5 billion IPO in late 2008 and listing on the Hong Kong Stock Exchange (and potentially also the Australian Stock Exchange), and

„h ARH will continue to work closely with its partner Shougang to progress development of the Balmoral South Iron Ore Project

Australian iron ore company Australasian Resources Limited (ASX: ARH, "the company") has received a merger proposal from Resource Development International Ltd (RDI) which, if successful, would see ARH manage an iron ore division with rights to over 20 billion tonnes of iron ore in Australia.

Under the proposal, shareholders of ARH would become shareholders in RDI, which has announced plans to raise up to A$5 billion through an Initial Public Offering (IPO) in late 2008 and to list on the Hong Kong Stock Exchange (HKSE) and potentially also the ASX.

RDI was recently formed to acquire substantial iron ore, nickel, exploration and energy interests, including rights to 20 billion tonnes of iron ore on the Balmoral tenements held by Professor Clive Palmer. Professor Palmer, who holds approximately 66.37% of the shares in ARH, currently controls RDI.

RDI's directors are Professor Palmer and Messrs Dominic Martino and Clive Mensink, who are directors of ARH.

A Board committee of non-associated directors of ARH comprising Andrew Caruso, Nicholas Jukes and Paul Piercy has been formed to consider the proposal and conduct negotiations on behalf of the board.