SIRIUS RESOURCES N.L.
10 September 2015
Independence Group NL ("IGO" or the "Company") advises that, following the overwhelming approval of the shareholders of Sirius Resources NL ("Sirius") of the acquisition of Sirius by IGO via a Scheme of Arrangement ("Scheme"), the Federal Court of Australia yesterday granted the final orders approving the Scheme to give effect to the acquisition.
IGO's Managing Director, Peter Bradford, commented:
"The addition of the world class Nova Project to IGO's portfolio of assets creates a leading Australian diversified mining company with a strong balance sheet and excellent current and future cash flows. We look forward to welcoming the former Sirius shareholders to the IGO register and to their continued support.
"The development of the Nova Project to create continued shareholder value is a key focus for IGO. This will be achieved through the delivery of the Nova Optimisation Study and further de-risking of the commissioning and operational phases of the project.
"Furthermore, and with the backing of IGO's cash generating projects, we are very optimistic about the opportunity to realise the potential of the under-explored consolidated Fraser Range and Tropicana ground.
"We welcome our new Sirius employees and the contractors engaged on the Nova Project, and look forward to working with them to realise the Project's potential.
"We acknowledge the Ngadju people as traditional owners of the land in which the Nova Project is being developed. IGO is committed to developing a strong relationship with the Ngadju people and to honouring the Nova Mining Agreement to deliver a variety of economic, educational, vocational and cultural initiatives to the Ngadju people."
Final steps to implementation of the Scheme
Following lodgement of the final court orders with ASIC, which occurred today, Sirius shares will be suspended from trading from the close of trade today.
The record date for determining entitlements to receive the consideration payable under the
Scheme is 5.00pm Perth time 15 September 2015.
The new IGO shares to be issued as consideration under the Scheme will commence trading on a deferred settlement basis tomorrow, 11 September 2015.
Implementation of the Scheme (i.e. completion) is expected to occur on 22 September 2015, at which time IGO will acquire 100% of Sirius and will issue and pay the Scheme consideration to Sirius shareholders.
Normal (t+3) trading in the new IGO shares issued as consideration under the Scheme is expected to commence on 23 September 2015.
During the past weeks, IGO has worked closely with Sirius to progress planning for the integration of Sirius personnel, systems and assets into IGO. Implementation of these plans will commence immediately following completion of the Scheme and is expected to be completed within three months.
Post-Completion Executive Management Structure
Following completion of the Scheme, Rob Dennis, currently Chief Operating Officer of Sirius, will join the IGO executive management team as General Manager Project Development accountable to the IGO Managing Director for the delivery of the Nova Project through to production. The majority of the Sirius Nova Project team will continue with IGO and the Nova project as part of Mr. Dennis' team.
During the development of Nova, Brett Hartmann, IGO's General Manager Operations, will work closely with Rob Dennis to progress the operational readiness for the Nova Project.
The IGO executive management team from completion will comprise: Peter Bradford Managing Director and CEO
Matt Dusci General Manager New Business
Rob Dennis General Manager Project Development
Brett Hartmann General Manager Operations
Scott Steinkrug Chief Financial Officer
Sam Retallack Organisational Capability Manager
Keith Ashby Sustainability Manager
Tony Walsh Company Secretary
Optimisation studies to a bankable feasibility study level are continuing with the primary objective of capturing additional value not identified as part of the original Nova Definitive Feasibility Study. The Nova Optimisation Study, which aims to improve the project's net present value and rate of return, is focused on a number of value drivers including:
Accelerated development rates and ramp-up;
Adjustments to the mine design and scheduling to prioritise higher-value ore, early in the life of the mine;
Increase of throughput rates early in the mine life via selective feeding of the softer, higher value, massive sulphide material;
Deferral of some underground capital expenditure to later years, when needed; and
Capturing current contracted and industry costs structures into the modelling. The Nova Optimisation Study is expected to be completed by 31 December 2015.
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Exploration
In parallel with the completion of the Nova Optimisation Study, IGO will conduct a review and re- targeting exercise over the Sirius land-holdings on the Fraser Range and develop a strategy for the systematic exploration of the land package.
Research and development activities over the broader Fraser Range and Tropicana belts, with the objective of unlocking the full potential of this underexplored emerging metalliferous province, will also be implemented.
This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning IGO's planned production and planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. Although IGO believes it has a reasonable basis for these forward-looking statements, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with those expressed or implied.
For further information contact:Peter Bradford Managing Director Independence Group NL Telephone: 08 9238 8300
Media Enquiries:
John Gardner
Citadel-Magnus
Telephone: +61 413 355 997
Tony Walsh
Company Secretary/General Manager Corporate
Independence Group NL Telephone: 08 9238 8300
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