Sandfire acquires MOD Resources Ltd
Sandfire is pleased to announce that implementation of the Scheme of Arrangement for the acquisition of all the issued shares in MOD Resources Ltd was completed on 23 October 2019.
Sandfire now holds a 100 per cent interest in MOD’s key copper exploration and development assets in Botswana through its in-country subsidiaries, Tshukudu Metals and Tshukudu Exploration. These include the advanced T3 Copper-Silver Project and an extensive belt-scale exploration portfolio spanning ~11,700km2 in the Kalahari Copper Belt.
The Company is pleased to welcome the MOD team members, both in Botswana and in Perth, Western Australia, who are joining the Sandfire Group as it embarks on its next step to become a globally diversified and sustainable mining company.
We also welcome a number of MOD shareholders to our register and their participation in Sandfire’s next growth chapter. MOD shareholders who require information about their shareholding can contact Sandfire’s share registry here.
By combining the expertise and experience of both management teams with Sandfire’s financial strength, and focusing our joint resources on the development and financing of the priority T3 Project, we expect to be able to advance this high-quality project to a decision to mine by mid-CY2020.
We will also continue to maintain and build on the excellent local community initiatives and strong Government relations developed by Tshukudu’s experienced in-country team, while applying the same high standards in safety, environmental management, sustainability, governance and transparency that we apply across all of our operations.
Sandfire has commenced optimisation of the current Feasibility Study for the T3 Project and expects to publish an updated Feasibility Study and Ore Reserve in the June 2020 Quarter ahead of a Decision to Mine.
We have also recently appointed highly experienced mining executive Ian Kerr as T3 Mine Project Director, to manage all studies and development of the T3 Mine in Botswana and all associated infrastructure. This includes completion of the Feasibility Study, management of the final design and engineering, regulatory approvals, contractor selection, construction, commissioning and handover to the operational team.
In parallel, Sandfire will progress the permitting activities for T3 with approval of the Environmental and Social Impact Assessment (ESIA) document expected in early CY2020, triggering a public review period and subsequent Mining Licence Application.
The Company has also continued exploration drilling activities in Botswana, which are expected to ramp-up as part of a major new district-scale program commencing in early CY2020.
Australian resident shareholders tax information
The market value of Sandfire Resources Ltd shares at implementation date, represented by the 1-day VWAP of Sandfire Resources Ltd shares on 23 October 2019, is $6.24.
Please refer to the MOD Scheme Booklet for a general summary of the potential Australian tax consequences for MOD shareholders arising from the disposal of their MOD shares under the Scheme of Arrangement.
Shareholders should seek their own independent advice in relation to the preparation of their income tax returns.