Australasian Resources in trading halt

Shares in Australasian Resources Ltd have been placed in a trading halt pending an announcement relating to the takeover proposal from billionaire Clive Palmer's Resource Development International Ltd.

Last month RDI proposed an all scrip merger deal with the company to acquire all Australasian shares in return for shares in RDI. Mr Palmer already holds a 66.4 per cent stake in Australasian.

The proposal placed an estimated price of $2.20 on each Australasian share, which valued the bid at about $327 million.

Shares in Australasian last traded at $1.34.

RDI is currently finalising plans for a $5 billion initial public offer and plans to list on the Hong Kong Stock Exchange and possibly the local stock market by year-end.

Australasian, along with project partner Shougang, is currently developing the Balmoral South iron ore project in Western Australia, which was acquired from Mr Palmer.