Fox Resources says it has received pre-bid acceptance commitments of nearly 19 per cent, several days after proposing a takeover bid for junior Hannans Reward.
Fox Resources says it has received pre-bid acceptance commitments of nearly 19 per cent, several days after proposing a takeover bid for junior Hannans Reward.
The Terry Streeter-chaired Fox said it has received commitments of 18.95 per cent.
Fox is offering one of its shares for every two Hannans shares held.
Mr Streeter said the merging of the two companies would bring together complementary nickel and iron ore assets.
Fox's main assets include the Mt Oscar iron ore project and the Radio Hill nickel operation in the Pilbara, which was last year placed on care and maintenance. The company has been focused on boosting its nickel resource at Radio Hill.
Hannans also holds an iron ore tenement, Jigalong, in the Pilbara and is exploring for nickel at its Forrestania project, located north of Western Areas' Flying Fox nickel mine. Mr Streeter also chairs Western Areas.
Hannans has previously said shareholders should take no action in relation to the offer.
The announcement is below:
Fox Resources Limited (ASX: FXR) announces it has secured strong support for its takeover offer for Hannans Reward Limited (ASX: HNR), having received pre-bid acceptance commitments from certain Hannans Reward shareholders with respect to 18.95% of Hannans Reward shares.
This gives Fox Resources a relevant interest in Hannans Reward shares of 18.95%.
Fox Resources announced last week its intention to make an off-market offer to acquire all of the shares in Hannans Reward (Offer), in a move that would bring together complementary nickel and iron ore assets.
The all scrip Offer is based on one Fox Resources share, for every two Hannans Reward shares on issue.
Fox Resources Chairman Terry Streeter said the strong show of support from certain Hannans Reward shareholders highlights there are recognisable benefits of combining the assets of the two organisations.
"We believe this represents a natural fit, at the right time, and the high level of pre-bid acceptance commitments highlights that shareholders see a compelling case," Mr Streeter said.
"Through the proposal, Hannans Reward shareholders have the opportunity to retain exposure to the long term development of Hannans Reward's nickel and iron ore assets under Fox Resources, and benefit from our strong exploration focus and marketing links through marketing partner Jinchuan Group Limited - China's largest producer of nickel, and a major Fox Resources shareholder," Mr Streeter said.
The pre-bid acceptance agreements, which cover 18.95% of Hannans Reward shares, are subject to certain conditions. Provided these conditions are met, the relevant Hannans Reward shareholders will accept Fox Resources' Offer for those shares.
In accordance with the Corporations Act, Fox Resources expects to dispatch its Bidder's Statement to all Hannans Reward shareholders containing detailed information relevant to the Offer as soon as practicable.
Fox Resources is being advised by Blake Dawson.
