Magnitogorsk Iron and Steel Works (MMK) will acquire 100% shares of Flinders Mines for a total value of A$554m ($538m).

MMK offered to acquire all the shares of Flinders Mines at A$0.30 ($0.29) cash for each share, representing 92.5% premium.

Flinders Mines’ major assets include the Pilbara iron ore project (PIOP) in the West Pilbara region of Western Australia, which has a total JORC complaint resource of 917.3 million tons.

The offer eliminates development risks associated with the PIOP and will provide shareholders of Flinders Mines with an opportunity to realise immediate value for their shares in the form of cash.

The board of Flinders Mines has evaluated the offer and recommended it to its shareholders in the absence of superior proposal.