Sandfire Resources NL (ASX: SFR) has this morning confirmed to investors that it has approached MOD Resources Ltd (ASX: MOD) with an indicative takeover offer. The announcement came after an AFR Street Talk report last night divulged details of the offer.
Sizeable copper player Sandfire fancies the smaller copper explorer enough to have made a 38¢ per share offer that values MOD at a significant premium to the market. The MOD Resources share price last closed at 22¢ on Friday.
However, MOD so far hasn't been enticed, believing that it's worth more than what Sandfire has put on the table. The offer is early-stage and non-binding, but Sandfire would have been hoping that it was sufficiently appealing for MOD to allow Sandfire a closer look.
MOD's appeal lies in its Botswana Copper Project in the Kalahari Copper Belt of Botswana. Botswana, a mining nation since the 1970s, is an appealing jurisdiction for its political stability, skilled workforce and solid infrastructure.
Sandfire has been on the lookout for growth projects as its flagship asset, the Degrussa Mine, approaches the end of its mine life in early 2022. It has previously shown interest in Adriatic Metals PLC (ASX: ADT) and Kingston Resources Ltd (ASX: KSN).
Trading for both stocks was paused this morning awaiting a further announcement.
Sandfire has since resumed trade, with the Sandfire share price currently 1.27% higher at $7.15.
