Carbine to acquire Cockatoo Iron

Subiaco-based Carbine Resources has signed an agreement to purchase Cockatoo Iron in a scrip deal worth $12 million.

After remaining in a trading halt for eight months, Carbine announced it would issue up to 291 million shares to Cockatoo Iron, which holds tenements on Cockatoo Island through its subsidiaries, Pearl Gull and Silver Gull Iron.

Alex Passmore, Myles Schammer and Patrick Murphy will be appointed to the board as non-executive directors.

At the same time, Carbine intends to raise $3.2 million to fund an exploration program at the Cockatoo Island iron ore project, off the coast north of Derby.

The company will issue 107 million shares at 3 cents per share, with major shareholder AMCI agreeing to subscribe for approximately 83 million shares ($2.5 million).  

Upon completion of the transaction, AMCI will hold almost 14 per cent interest in Carbine and will have the right to appoint a nominee to the board, which is proposed to be Patrick Murphy.

AMCI can appoint a further two directors if its interest in Carbine Resources exceeds 20 per cent.

Carbine said the acquisition and capital raising are subject to conditions, including shareholder approval and the company’s recompliance with certain ASX listing rules.

Carbine requested a pause in trading in May last year, followed by a voluntary suspension.

In response to an ASX price query earlier this month, Carbine said the reason for the voluntary suspension was for the company to finalise negotiations for the Cuckatoo Island acquisition.

The company’s shares remain in a trading suspension.