$393m deal pushes Hillside copper forward

If the transaction is implemented, each Rex shareholder will receive a cash amount of A$0.47 per share.
If the transaction is implemented, each Rex shareholder will receive a cash amount of A$0.47 per share.

MACH is set to acquire all remaining shares of Rex Minerals (Rex) (ASX: RXM) in a new scheme implementation deed. The Rex board has unanimously recommended the transaction.

The offer follows a competitive global partnering process which identified a $854m funding and development pathway for mining operations at Rex’s Hillside copper-gold project in South Australia.

Rex Minerals chief executive Richard Laufmann says this option provides certainty for stakeholders in Hillside, including the local community, the South Australian Government and Rex employees.

“The Transaction provides certainty of value and a significant premium representing a 98% uplift relative to Rex’s 90-day volume-weighted average price, as well as the opportunity for Rex shareholders to realise their investment at a 10-year historical share price high,” he said.

“The South Australian Government has been a leader in Australia in support of decarbonisation and copper development. The successful development of Hillside will very much align with their strategy.

“Subject to approvals, we look forward to working with MACH through to completion and watching them develop the Hillside project, Australia’s largest fully permitted and shovel ready copper project.”

Rex independent non-executive chairman Ian Smith says the transaction is a great outcome for shareholders.

“Management has done a terrific job advancing Hillside to be Australia’s largest fully permitted and shovel ready copper project,” he said.

“The MACH offer is the culmination of many years of hard work and delivers certain value for shareholders.”

MACH managing director Ferdian Purnamasidi says the company is looking forward to continuing the development of the Hillside project.

“Our strong focus on copper is critical to the energy transition process,” he said.

“We remain committed to advancing the excellent work undertaken by Rex on the Yorke

Peninsula, including supporting the local workforce and the broader Yorke Peninsula community throughout the ownership transition.”

A meeting of Rex shareholders to approve the transaction is expected to be held in October 2024. Following a successful vote, the transaction is expected to be implemented in late October 2024.