A$20m Sale of Reward Project
Rox Resources Limited (“Rox”) owned a 49% joint venture interest in the high grade Reward zinc-lead project in the Northern Territory, with the other 51% owned by Teck Australia Pty Ltd (“Teck”). Following a decision to seek offers for Reward, in July 2016 Rox announced that it had entered into an exclusivity agreement to sell its interest in Reward to IMI Medical Limited, subject to Teck’s pre-emptive rights. In August 2016, Rox announced that it had received and accepted a superior offer for Reward from Marindi Metals Limited, also subject to Teck’s pre-emptive rights. In October 2016, Rox announced that Teck had elected to exercise its pre-emptive rights.
Definitive sale agreements between Rox and Teck were executed in January 2017 and the sale to Teck completed in February 2017, with Rox receiving upfront cash consideration of $16.0m. A further $3.8m in cash is due to be paid to Rox on the earlier of a Bankable Feasibility Study and expiry of 6 years.
Azure acted as financial adviser to Rox Resources on the sale transaction.