MinRes acquires struggling miner linked to Chris Ellison’s brother

Mineral Resources (ASX: MIN) has executed a binding asset and share sale agreement with the administrators of Resource Development Group (RDG).

Under the agreement, MinRes will acquire RDG assets, including the Lucky Bay garnet mine, following creditor approval of MinRes’ proposed deed of company arrangement (DOCA) on September 1.

MinRes has reassured investors that managing director Chris Ellison was not involved in deliberations to acquire the group formerly headed by his brother, Andrew Ellison.

MinRes chair Malcolm Bundey comments on the decision.

“The board and I sought to ensure that MinRes shareholders could realise some value from their investment, and that there were no perceived conflicts in our decisions on RDG’s future,” he said.

“I want to thank RDG’s employees for continuing to operate safely and productively during this process.”

MinRes will assess options to best realise value from the assets for the company’s shareholders.