Sandfire Resources NL is set to acquire the remaining 30% stake in the Monty gold-copper project in Western Australia from joint venture partner Talisman Mining Ltd., The Australian Financial Review's Street Talk wrote.
The transaction could be worth around A$70 million, with the plans expected to be announced by June 4, according to the same-day report.
Sandfire, which owns a 70% interest in Monty, is reportedly eyeing an asset level deal as opposed to corporate level, due to the lower required acceptance threshold for the former.
Talisman would need to secure more than 51% of shareholder votes for the asset sale, while a company takeover would require 75% of shareholder votes.
This could mean that Talisman's largest shareholder, Kerry Harmanis, with an 18% stake in the company, would be unlikely to stop the asset sale, sources added. It is understood that Sandfire has previously pursued a Talisman takeover, but it was unable to secure support from Harmanis.
Sandfire CEO Karl Simich recently revealed the plans to increase the company's exploration spending, hinting a between A$1 billion and A$2 billion funding for a development project.
"What could we transact in? I think anywhere between zero and a billion dollars if it was worthwhile as a number, whether it be an acquisition, whether it be a development project, that's the order of magnitude," Simich was quoted as saying.
In October 2017, Talisman finalized a US$20 million loan to fund its share of Monty development costs estimated at A$22 million, with first production targeted in the December quarter of 2018.
