Greenvale Energy (ASX:GRV) and Aurum Resources (ASX:AUE) are the latest mining companies to join the M&A party, today (16 October) announcing acquisitions in their respective markets.
As reported by this news service, the clock has already started ticking towards the next ‘boom’ with deal activity heating up after major mining companies ended the last cycle “in the best financial condition they have collectively been in for some time”.
Speaking to Mining.com.au in August, Lion Selection Group (ASX:LSX) CEO Hedley Widdup believes “paper deals, cash deals, or extending balance sheets to fund something” all appear possible from this backing.
In Ansarada’s Australia and New Zealand M&A Outlook for 2024-25, this coming year could be one of strategic growth, where adaptability and clear strategic vision could unlock the vast potential in the M&A market.
Partner and M&A lawyer at MinterEllison, Kate Koidl, is cited in the report saying MinterEllison is ‘cautiously optimistic’ of deal activity heading into 2025.
Greenvale is expanding its Australian energy portfolio and has entered into an agreement with privately held Gempart (NT) to acquire a sandstone-hosted uranium project in the eastern Arunta region of the Northern Territory.
Greenvale has secured the rights to obtain an immediate 80% interest in two tenements being free-carried through to a Definitive Feasibility Study (DFS).
Meanwhile, Aurum Resources (ASX:AUE) has entered into a bid implementation agreement to acquire Mako Gold (ASX:MKG). The proposed merger will reportedly create an emerging exploration and development gold business in West Africa, with cash of more than $20 million to advance the flagship Napié and Boundiali Projects in northern Côte d’Ivoire.
These are some of the latest transactions from ASX-listed mining companies as they head into Q4 2024 – the fourth quarter of each year is historically the busiest time for M&A.
Uranium deals appear to be heating up amid a strengthened outlook for the commodity.
One notable transaction at play is Paladin (ASX:PDN), which is awaiting clearance from the Canadian Government regarding its proposed acquisition of Fission Uranium (TSX:FCU) by way of a court approved plan of arrangement.
On 8 October 2024, a final order from the Supreme Court of British Columbia was obtained approving the all-scrip acquisition, as reported. However, completion of the arrangement remains uncertain due to the requirement to obtain Investment Canada Act (ICA) clearance.
Askari Metals (ASX:AS2) continues to review and evaluate potential strategic acquisitions within Tanzania, after acquiring the Eyasi Uranium Project. Askari has completed due diligence investigations on several target projects and remains in discussions with several third parties regarding another possible deal.
Last week, Terra Uranium (ASX:T92) signed definitive option agreements with ATHA Energy (TSX-V:SASK) that will give both companies the option to acquire a percentage of each other’s projects in Canada. By entering into these agreements, Terra will increase its footprint in the Athabasca Basin by more than 60,000 hectares, as reported by Mining.com.au.
Two days earlier, Rio Tinto (ASX:RIO) reached a definitive agreement to acquire Arcadium Lithium (NYSE:ALTM) in an all-cash transaction for US$5.85 per share. Both the Rio Tinto and Arcadium Lithium boards have unanimously approved the deal. The transaction will be implemented by way of a Jersey scheme of arrangement and is expected to close in mid-2025.
K2fly has now been delisted from the Australian Securities Exchange (ASX) after Accel-KKR completed its $38 million acquisition. The cash consideration the global technology-focused investment firm paid is reportedly valued at $0.19 per share.
In September, power management company Delta signed an agreement to acquire the power inductor and powder materials business and assets of Japanese company Alps Alpine for US$71 million. As part of the deal, Delta will also buy the production and R&D equipment, patents, and intellectual property of Alps Alpine and its subsidiary Alps Electric Korea.
In its latest financial year report for 2024, global mining services company Austin Engineering (ASX:ANG) is also continuing to assess potential strategic M&A opportunities, amid projecting capital expenditure to rise to $10 million.
As reported by Mining.com.au, potential deals will aim to improve Austin’s geographic capabilities, customer offerings, production capacity, and product footprint, and will continue to leverage its economies of scale.
The mining sector has now ticked past ‘declining exploration’ and is in a period of mergers and heading towards cash takeovers, and eventually new floats with a ‘boom time’ also on the cards, as reported.
The cycle tracker is Lion’s patented mining clock and is central to the firm’s investment strategy.
Write to Adam Orlando at Mining.com.au
Images: Unsplash & Lion Selection Group
