Competing bid for Rox's zinc stake

Rox Resources has received a competing offer for its stake in the Reward zinc project in the Northern Territory, with Marindi Metals saying its offer will expire at 5pm today if it is not accepted. 

Perth-based Rox told the market today it had received an unsolicited offer from Marindi for its 49 per cent stake in the Reward project.

The Marindi offer comprises $6 million in cash and $10 million in Marindi securities, including convertible preference shares with a three-year term.

The offer competes with Melbourne-based IM Medical's previously announced $14.8 million offer for the stake, which comprises $2 million in cash and $12.8 million in IM shares, after a one-for-150 share consolidation.

Rox would emerge as the majority shareholder in IM if that deal is approved.

In a statement, Marindi said its offer represented a vastly superior proposal to IM’s ‘highly conditional’ offer.

However, Rox was coy on the offer, saying it had a "purported value of $16 million" and was conditional upon a number of matters, including completion of a fundraising by Marindi, and would expire at the close of business today unless accepted or extended.

In a statement, Marindi said it had been advised by Rox that it is legally unable to discuss the Marindi offer due to a 'no-talk' restriction in its agreement with IM.

The Reward project is jointly owned by Rox and Teck Australia.

Rox shares closed 11.7 per cent higher to 1.9 cents each.