Minerals Resources Ltd. (MinRes), Perth, has given notice of an off-market takeover bid to acquire all shares in JV partner Norwest Energy NL that it does not already own.
MinRes is currently the largest shareholder in Norwest with 19.9% of shares on issue.
MinRes intends to offer one fully paid ordinary share for every 1,367 Norwest shares held on the register date. The offer implies a price of $0.06 (Aus.) per Norwest share and values Norwest at $403 million (Aus.).
Norwest’s principal asset is a 20% interest in the September 2021 North Perth basin Lockyer Deep gas discovery in permit EP368. It also holds 22.22% interest in neighboring permit E426. MinRes holds the remaining interests in both permits and is operator.
The scrip nature of the offer—which represents a 33% premium to the closing price of Norwest shares on Dec. 15 and a 27% premium to the 1-month volume weighted average price—means Norwest shareholders will retain their exposure to both permits but will no longer be exposed to funding and development uncertainties, MinRes said.
MinRes began building its onshore gas acreage position across the Perth and Carnarvon basins in 2015, headlined by the Lockyer Deep discovery. It plans to drill another six exploration wells in Perth basin permits during the next 2 years, beginning early in 2023. It also plans to fast-track appraisal and development studies at Lockyer Deep.