Teck considers options in Rox deal

Rox Resources’ joint venture partner Teck Australia has voiced concern today with the company’s proposed sale of its stake in the Reward zinc-lead project to Marindi Metals, after competing bidder IM Medical said last week an exclusivity agreement had been breached.

Perth-based Rox last week accepted a revised offer from Marindi for its 49 per cent stake in Reward in exchange for $21 million in cash and shares, with the deal subject to Teck choosing not to acquire the stake as per priority terms of the earn-in agreement between the two companies.

In a statement today, Rox said it had provided Teck with an offer to sell its interest in Reward on the same terms as Marindi’s, in compliance with its obligations.

“Teck has written to Rox setting out some concerns with respect to the offer and its compliance with the joint venture agreement, and in doing so has reserved its rights under the agreement,” Rox said today.

“At Teck’s invitation, Rox has entered into discussions with Teck to clarify these matters.”

IM Medical also recently voiced its opposition to Rox’s acceptance of the Marindi offer, saying the company breached exclusivity terms.

“IM considers the actions of Rox are in breach of the terms of the exclusivity agreement currently in place with IM, and IM reserves its rights in relation to the exclusivity agreement,” the Melbourne-based company said in a statement.

“The directors of IM are disappointed with the outcome of the offer process.

“IM will now consider its options and will continue to look for a suitable business or project for future investment.”