Australian resources company Cape Lambert Iron Ore has announced its intention to make an off-market scrip takeover offer for all of the issued shares in Corvette Resources.
Cape Lambert already owns about 20% of Corvette through the acquisition of CopperCo in June 2009.
Corvette shareholders would achieve greater value by combining with Cape Lambert’s significant technical and corporate expertise, the company said in a statement.
Cape Lambert has a proven track record in strategically developing assets and acquiring significant financial support, Cape Lambert executive chairman Tony Sage said.
“This market is unforgiving for small resources companies, it is difficult to access capital, technical expertise and in the process unlock shareholder value,” Sage said.
“We have exceptional relationships with a range of off-take and development partners we feel could play a key role in enhancing the development opportunities of Corvette’s assets.”
The company plans to lodge a formal bidder’s statement with the Australian Securities Exchange and the Australian Securities and Investments Commission shortly.