25 November 2013 22:02 [Source: ICIS news]
HOUSTON (ICIS)--Rum Jungle Resources has commenced the compulsory acquisition of all the remaining shares in Central Australian Phosphate after it has gained an interest of more than 90% of the company, the Australian fertilizer developer announced on Monday.
Based in Darwin, the company is strategically focused on developing and operating phosphate and potash projects specifically in the Northern Territory of Australia.
Rum Jungle began its takeover offer for Central Australian Phosphate in February by offering one of its own shares, along with 20 cents in cash for every 20 Central Australian Phosphate shares held.
That initial offer was later modified to 1 cent in cash and one Rum Jungle share for every 13 Central Australian Phosphate shares held. The company has valued the takeover target at approximately Australian dollar (A$) 12.7m ($11.7m, €8.7m) and has set a date of 6 December for the takeover offer to be completed.
Central Australian Phosphate is strategically focused on exploration of phosphate in Australia’s Northern Territory. By acquiring the company, Rum Jungle would be able to pursue developing its Barrow Creek 1 and Arganara operations in the Northern Territory as a single phosphate development.
A scoping study has already been finalised by Rum Jungle, and officials have estimated that operations at the Barrow Creek 1 and Arganara sites could start by 2016. Estimates are that the site could contain deposits of approximately 548m tonnes.
($1 = €0.74, $1 = A$1.09)
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