By Kari Williamson
MMK has offered A$0.30 per Flinders share, valuing the company at A$554 million. Flinders has the rights to start production at the Pilbara Iron Ore in West Pilbara, which has a resource of 917.3 MT. It is expected to start production in 2015.
Flinders Chairman, Robert Kennedy, says: “The proposal from MMK offers Flinders' shareholders a very significant premium and value certainty in an uncertain market. Flinders has evolved significantly since late in 2007 when it was worth -A$0.01 per share to today when it has received a A$0.30 per share offer, which values the company at A$554m.
“This is a truly fantastic achievement for Flinders and reflects the dedication of Flinders' Management Team and Board of Directors. A transaction with MMK enables Flinders' shareholders to avoid the significant development risks which would need to be overcome in order to bring the Pilbara Iron Ore Project into production.”