The copper market is heating up and recent news that the $1.1 billion Sandfire Resources would snap up junior explorer MOD Resources at a nice 45 per cent premium proves the majors are cashed up and looking to do deals. Deals like this, which is priced at $167m, are a win-win for both parties.
Sandfire (ASX:SFR) boss Karl Simich said the acquisition of MOD (ASX:MOD) added the near-term T3 copper project in Botswana to Sandfire’s global development pipeline, while also adding a significant landholding on the highly prospective and underexplored Kalahari copper belt.
Meanwhile, MOD managing director Julian Hanna said MOD viewed the deal as an “opportunity to maximise value” from the T3 project, which could be funded from Sandfire’s balance sheet and cash flows.
Metal Tiger Plc (LON:MTR) is a London Stock Exchange AIM-listed investing company primarily focused on undervalued natural resource opportunities.In Botswana, Metal Tiger, through its JV with MOD and its interest in Kalahari Metals Limited, has a growing interest in the large and highly prospective Kalahari copper/silver belt.