Belmont-based ORH has terminated its proposed acquisition of private mining services company Resco, which it flagged last month along with a $23.5 million capital raising.
The Domenic Martino-chaired ORH today released a brief statement saying that following recent talks with Resco, both parties had mutually agreed to terminate the transaction, effective immediately.
Chief executive Geoff Hann told WA Business News the acquisition was terminated after time ran out for completion of due diligence.
Mr Hann said that in the short term the parties have simply decided to terminate the transaction, however he did not rule out a the possibility of both companies returning to negotiations.
Last month ORH had signed a term sheet with Resco to acquire its group of companies, including Springsure Mining Pty Ltd.
The acquisition was to have further expanded ORH into New South Wales and Queensland, with the company planning to relocate to Newcastle after the transaction. The acquisition was also to have opened a WA base for Resco.
Under the offer, ORH was to issue 369 million ordinary fully paid shares and raise a minimum of $22 million that was to be used to pay off debt across the Resco group.
A further $1.5 million was to be raised through a share purchase plan.
Mr Hann said the SPP will go ahead but the $22 million capital raising has been dropped.
Shares in ORH weSre unchanged at 3.3 cents at 15:48 AEDT.