ASX-listed Stonewall Resources has entered into a conditional agreement with Shandong Qixing Iron Tower Co regarding the potential sale of its subsidiary, Stonewall Mining. The agreement is the result of comprehensive and detailed discussions between Stonewall and Shandong to allow Shandong to undertake due diligence as a precursor to the potential sale.
The agreement provides that the transaction is subject to Stonewall obtaining all necessary regulatory and shareholder approvals required for the transaction to proceed. It also provides that Shandong is prepared to pay an indicative price of US$140 million or above for Stonewall Mining. Final pricing will be subject to a number of matters including completion of valuation scenarios, due diligence investigations and approval of the Stonewall Board.
Stonewall Resources’ CEO Lloyd Birrell says, “I am delighted that our company has received an offer, which recognizes the real value in Stonewall Resources, especially considering that Stonewall has only been listed for less than six months. Whilst Stonewall has only been listed for a short time, this is a positive indication that there is interest in the company in both Australia and Asia and a clear indication that as Stonewall transitions from explorer to producer, it is being closely monitored. Shandong has recognized the company’s underlying value and potential.”
Stonewall Resources’ chairman Dave Murray says, “It is pleasing to present our shareholders with an offer that recognizes the value in Stonewall. Our relationship with cornerstone investor, Hanhong, has proved to be extremely beneficial, particularly in marketing the business in China and managing the discussions and negotiations with Shandong. It makes a huge difference to have our own people on the ground in China who are in a position to provide information first hand.”