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Highlights
- CZR receives $75 million proposal for its flagship Robe Mesa project
- Interest from global iron ore giants intensifies bidding landscape
- Fenix offer still backed by CZR board amid competing interest
CZR Resources (ASX:CZR) is at the centre of an escalating bidding contest after receiving a conditional $75 million offer for its flagship Robe Mesa iron ore project in Western Australia. The offer, submitted by the Robe River Joint Venture—a powerful alliance between Rio Tinto (ASX:RIO), Mitsui & Co, and Nippon Steel Corporation—signals growing international interest in the high-grade iron ore asset.
The proposal arrives shortly after a string of takeover movements surrounding CZR. Just a day earlier, Gold Valley Iron Ore submitted an unsolicited on-market takeover bid to acquire all shares in CZR. On the same day, Fenix Resources (ASX:FEX) revealed it had already secured shareholder acceptances for over 10% of CZR's issued shares in relation to its conditional off-market bid first launched in February.
Despite the heightened activity, the board of CZR continues to favour the Fenix proposal. The directors have unanimously endorsed the bid in the absence of a superior alternative, citing the binding nature of the agreement already in place with Fenix.
The Robe Mesa project remains central to this competitive landscape. With ore reserves of 33.4 million tonnes grading 55.0% iron and a total resource of 45.2 million tonnes at 56% iron, the deposit is positioned as a low-capex direct shipping ore opportunity. Its low strip ratio and cost-efficient path to production enhance its strategic value.
CZR is actively assessing the proposal from the Robe River JV, which includes a potential alternative debt funding arrangement. The consortium has indicated willingness to match the working capital loan offered by Fenix, in addition to covering break fees tied to CZR’s existing agreement with Fenix Resources.
Legal advisers have guided CZR's board to treat the Robe River JV approach as a potential competing offer. This has prompted CZR to initiate discussions with the joint venture group to further evaluate the terms and implications of the proposal.
Should a transaction proceed, CZR would retain ownership of its remaining assets including the Croydon gold project, the Buddadoo project, and its 50% interest in the Ashburton Link project—ensuring the company remains active in multiple resource plays despite the potential sale of Robe Mesa.
