The offer, which has been recommended by Polaris directors, includes one Mineral Resources share for every 12.5 Polaris shares, valued at 38 cents per Polaris share based on Mineral Resources ’ last traded share price on 14 August.
A separate offer will be made for all Polaris options currently on issue, Mineral Resources said.
Mineral Resources will provide Polaris the capability to advance its deposits into production in a short time frame and in an extremely cost effective manner using proven methods, Mineral Resources MD Peter Wade said.
“Mineral Resources ’ Board is confident that combining the companies and potentially realising the upside offered by the combined group, with its exposure to the Asian markets, will be a dramatic value driver for the shareholders of both Polaris and Mineral Resources ,” Wade said.
The offer represents the culmination of a comprehensive process undertaken by its board to identify the optimal route to develop its Yilgarn Iron Ore project and other projects in the Yilgarn and Pilbara, Polaris said.