Padbury, Aurium open merger talks

Junior iron ore explorers and joint venture participants Padbury Mining and Aurium Resources have entered formal merger negotiations.

The two companies signed an agreement late yesterday afternoon setting out a 60-day exclusivity and due diligence period.

Terms of the merger have not yet been agreed, and would be subject to shareholder approval.

A merger of the two Mid West-focused companies would create an explorer with a combined market capitalisation of around $41 million.

The companies are already developing the Peak Hill iron project in a joint venture arrangement.

Drilling to date has identified a maiden inferred JORC compliant resource of 850 million tonnes at 27.3 per cent Fe and a hematite exploration target of between 10Mt and 55 Mt at 55-58 per cent Fe.

Both companies’ shares have been steady this morning, with Padbury trading at 1.4 cents and Aurium 2.7 cents.