- Macarthur Minerals is terminating the letter of intent that the company signed with Timeless Capital
- The termination was due to a recent assessment which placed the value of Macarthur’s Pilbara Assets as higher than was laid out in the letter of intent
- The company intends to immediately pivot into an alternative transaction proposal
- Macarthur is an iron ore development, gold and lithium exploration company
- Macarthur Minerals (MMS) is down 1.96 per cent and is currently trading at C$0.50 per share
Macarthur Minerals (MMS) is terminating the letter of intent that the company signed with Timeless Capital on February 26, 2021.
The letter of intent proposed the sale of Macarthur’s non-iron ore assets to Timeless in return for an equity allocation in Timeless.
As a publicly listed company, Macarthur is obligated to demonstrate to its shareholders that it is receiving fair value for its Pilbara Assets.
Consequently, Macarthur recently commissioned an independent technical assessment and valuation of its Pilbara Assets for internal due diligence purposes.
This assessment has resulted in a higher valuation of Macarthur’s Pilbara Assets than was originally contemplated under the letter of intent.
Macarthur and Timeless Capital were unable to conclude the terms of the definitive agreement within the timeframe set out in the letter of intent.
Therefore, Macarthur terminated the letter of intent with effect on 31 March 2021.
The company intends to immediately pivot into an alternative transaction proposal that will allow Macarthur to maximize the value potential of the Pilbara Assets for shareholders.
Joe Phillips, Macarthur’s Managing Director, commented,
“Whilst it is regrettable that a transaction could not be concluded with Timeless, this process has delivered a great outcome for Macarthur shareholders.”
“The recent fieldwork and independent geological review have been exceptionally important in reconfirming the board’s view on the value of these assets,” he continued.
Macarthur is an iron ore development, gold and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects.
Macarthur Minerals (MMS) is down 1.96 per cent and is currently trading at C$0.50 per share as of 10:52 am ET.
