Fenix to acquire CZR

Fenix Resources (ASX: FEX) will acquire CZR Resources (ASX: CZR), creating a large-scale, diversified iron ore mining and logistics business operating in both of WA’s major iron ore regions — the Mid-West and the Pilbara.

The combined entity will benefit from Fenix’s demonstrated operational expertise and profitability across its mining, logistics and port businesses and CZR’s 85% interest in the substantial Robe Mesa iron ore project and plans for securing approvals to

construct bulk loading facilities for the export or iron ore at the existing Port of Ashburton.

Fenix executive chairman John Welborn says this is a transformational event for Fenix.

“CZR’s Robe Mesa iron ore project is one of the last independent large-scale high-quality iron ore development assets in the Pilbara,” he said.

“Fenix’s market-leading port, logistics and mining capabilities are ideally suited to rapidly and efficiently advance the Robe Mesa into production and maximise value creation for our combined shareholder group.

“Fenix is on track to triple iron ore production during 2025 via the expansion of our Mid-West iron ore mining portfolio and using our unique integrated mining, logistics and port infrastructure model.

“The addition of CZR’s assets will expand our portfolio to include interests in projects with mineral resources of approximately 140mt of iron ore and provide an immediate opportunity to develop large-scale low-cost iron ore production in WA. “

CZR managing director Stefan Murphy says the company’s board is excited to recommend this transaction with Fenix to shareholders in the absence of a superior proposal.

“The offer represents a robust premium to the CZR share price,” he said.

“It will also give our shareholders the opportunity to receive shares in Fenix, which has the intent, the capability and the balance sheet to deliver the Robe Mesa iron ore project and Ashburton Link as outlined in our definitive feasibility study.

“I am confident that under Fenix’s leadership Robe Mesa will be successfully developed and operated and in a highly profitable way for shareholders of Fenix and CZR.

“Absent a superior proposal, the board of CZR unanimously recommends that CZR shareholders accept Fenix’s offer.”