The Hillside project involves the development of an open-pit mine, an associated processing plant and infrastructure. Credit: optimarc/Shutterstock.

MACH Metals Australia has signed a scheme implementation deed (SID) with Rex Minerals to acquire all outstanding shares of Rex for A$0.47 per share.

This transaction values Rex Minerals at approximately A$393m ($265.18m).

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The offer from MACH represents a substantial premium of 79% to the 30-day volume-weighted average price (VWAP) and 98% to the 90-day VWAP.

MACH Metals Australia, a subsidiary of MACH Australia, currently holds a 15.8% stake in Rex.

Rex said the move is a culmination of a global search for funding partners to develop its Hillside Copper-Gold Project in South Australia, which requires capital of A$854m.

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The acquisition is contingent upon approvals from the Foreign Investment Review Board and Rex shareholders. Notably, the deal is not subject to financing or due diligence conditions.

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Following assessment, Rex said its board has unanimously approved the acquisition, recommending shareholder approval barring any superior offers and pending favourable conclusions from an independent expert.

Financial advisory services for the deal are provided by Macquarie Capital and Baker McKenzie for Rex, and MA Moelis Australia alongside Corrs Chambers Westgarth for MACH.

The Hillside project includes the development of an open-pit mine, an associated processing plant and infrastructure.

As per the estimates, the project holds resources of 1.9 million tonnes of copper and 1.5 million ounces (oz) of gold, with stage 1 approved by the South Australian Government in July 2020.

The project’s stage 1 mine plan anticipates an average annual production of 151,500 tonnes (t) of copper concentrate, containing 42,000t of copper and 30,500oz of gold.