Consmin gets Reliance (March 28, 2005)

Australian alloy-metals producer Consolidated Minerals (CNM-L) has netted 96% of the shares of nickel producer Reliance Mining in a recent takeover bid.

Consolidated had offered one of its shares for every 10 Reliance shares, plus A30 per share, to take over the company. Reliance also had a series of convertible notes, for which Consolidated was offering the same trade ratio and cash payout.

Consolidated has said it will move to take up the remaining Reliance shares under compulsory-acquisition provisions of Australian corporate law.

The takeover adds nickel to Consolidated’s product mix, which included manganese from the Woodie Woodie mine and chromium from the Coobina mine, both or which are in Western Australia. Consolidated plans to increase production from Reliance’s Kambalda nickel operations to 10,000 tonnes annually, doubling current capacity.