Pictured: Cassini Managing Director Richard Bevan
Oz Minerals Ltd (ASX:OZL) has moved to consolidated ownership of the West Musgrave project with this morning’s proposed scheme of arrangement to acquire Cassini Resources Ltd (ASX:CZI).
A PFS in February indicated a long life ~26-year open pit copper and nickel sulphide mine from a maiden probable ore reserve of 220mt @ 0.36% copper and 0.33% nickel was possible. Pre-production capital costs of about $995 million (excluding study costs) was estimated, while further opportunities like Succoth copper deposit and others are highly prospective at the West Musgrave project.
Cassini shareholders will receive consideration with an implied value 16c/share comprised of: 15 in the form of one new OZL share for every 68.5 CZI shares held and 1c/share cash capital return to be paid out of Cassini’s existing cash balance.
Meanwhile, Cassini’s Yarawindah (nickel-copper-PGE) and Mt Squires (gold) projects will be demerged into the Caspin Resources Ltd vehicle, which is set for an ASX listing.