Helix Resources‘ (ASX:HLX) Bryah Basin acquisition is “not opportunistic” but rather is the culmination of executing the copper diversification strategy the company embarked on earlier this year, says Managing Director Kylie Prendergast.
The company has entered into separate conditional binding letter agreements to acquire a 51% interest in a strategic portfolio of copper projects in the Bryah Basin of Western Australia.
The portfolio includes seven projects covering 320km2 in the basin, which hosts volcanic massive sulphide-style copper-gold deposits.
Speaking to Mining.com.au, Prendergast says these transactions form part of the company’s strategy to diversify and expand its copper exploration footprint.
“This is not an opportunistic acquisition – Helix embarked on a copper diversification strategy in early 2024 focused on identifying new copper projects in Australia. This has included the drilling program at the Bijoux copper project and auger drilling at the Muriel Tank gold project with results anticipated soon,” she tells this news service.
“The Bryah Basin projects entered our business development pipeline in mid-2024, and we are very pleased that the respective vendors recognise the value in partnering with the current Helix board and expertise the technical team can bring to this strategic copper opportunity.
“We are excited by some of the new targets the Bryah Basin acquisition brings into the Helix portfolio – we will delve into the technical details of these projects and release a more fulsome exploration strategy and plan of activities soon.
Prendergast says Helix has worked hard to continue ‘business as usual’ despite the Acta partial takeover proposal, which Helix has unanimously advised shareholders to reject. She says instead of being distracted by the hostile offer the company is looking ahead to 2025, “lets go drilling”.
The proposed partial acquisition is conditional on no change of control at the Helix board – Prendergast says Helix is urging shareholders to “back the current board and get your votes in by 17 November”.
Helix is urging shareholders to send in their proxy votes before this Sunday amid a decision on the hostile partial takeover offer from privately held Australian investment firm Acta Investment Group and its associate Nuevo Royalty, as reported by this news service.
The proportional off-market takeover proposal includes Acta seeking to have three nominees – Michael Povey, Kevin Lynn, and David Scoggin – appointed to Helix’s board.
There are concerns that due to the conditions of the offer there is potential that Acta could obtain board control and then not proceed with the bid.
Helix is recommending shareholders reject the offer and board seat bids and with the offer open until 15 January 2025 “there is plenty of time for people to decide” and become further informed about the takeover tilt.
The company has retained Hamilton Locke as legal counsel and New Holland Capital as corporate advisors to advise on the process.
Write to Adam Orlando at Mining.com.au
Images: Helix
