A portion of the Windward tenement package is contiguous with IGO’s Nova mining lease. Image: Windward.
By Reuben Adams
A $20.5 million takeover bid for WA-based explorer Windward Resources could substantially increase Independence Group’s (IGO) tenement holdings around its Nova project in the Fraser Range of WA.
IGO’s 5 October offer of $0.19 per share – a 46 per cent premium to the last close at 16 September 2016 – was unanimously supported by the Windward board.
Windward major shareholder Mark Creasy (27.44 per cent), who originally discovered the world-class Nova deposit with Sirius Resources, intended to accept the offer in the absence of a superior proposal.
IGO managing director Peter Bradford said the company was committed to consolidating a larger landholding within the Fraser Range, and being a leader in the understanding of the Fraser Range geology.
“A portion of Windward’s tenement package is contiguous with the Nova Mining Lease and thus there is a clear rationale for this bolt-on transaction,” he said.
“The Offer provides Windward shareholders with the certainty of cash at an attractive premium, removing the risk and uncertainty of exploration, and the potential for further capital raisings by Windward in the future.”
Windward holds about 1700sqkm of under explored tenements within the Fraser Range, a portion of which is contiguous with the 47sqkm Nova mining lease where IGO is developing the world class Nova nickel-copper-cobalt project.
Nova is in the final stages of development and construction, with processing plant commissioning expected to commence in late October. First concentrate is expected in December 2016.
As part of the takeover agreement, an 8 September agreement with Eastern Goldfields to become a cornerstone shareholder in Windward via a $2.2m share placement would not go ahead.