ASX-listed CZR Resources has received a binding A$75-million cash offer from the Robe River Joint Venture (RRJV) participants to acquire its interest in the Robe Mesa iron-ore project, in Western Australia’s West Pilbara region.

The offer follows a revised, unsolicited, non-binding proposal made in March and is now underpinned by a signed sale and purchase agreement between CZR’s wholly owned subsidiary, Zanthus Resources, and RRJV members – North Mining (an indirect Rio Tinto subsidiary), Robe River Mining (60% owned by Rio Tinto, 40% by Mitsui), and Mitsui Iron Ore Development.

The transaction includes the transfer of tenements M08/519, M08/533, E08/1060, E08/1686 and E08/2137, along with plant, equipment and mining information. A non-refundable exclusivity fee of A$650 000 has also been offered upfront.

As part of the transaction, Robe River Mining will provide Zanthus with a A$3.85-million secured working capital facility. ZanF and Mark Creasy have agreed to waive all rights under the Yarraloola JV to facilitate the transfer of the sale assets to the RRJV.

CZR’s board has determined the Robe River JV offer to be a “superior proposal” under the terms of its bid implementation agreement with Fenix Resources, which is currently seeking to acquire CZR through an all-scrip transaction.

CZR noted that the offer price represents a significant premium and that the cash consideration provides flexibility and reduces the need for dilutive capital raisings. Post-tax proceeds of about A$68-million would allow the company to fund development of its retained projects, which include the Ashburton Link, Croydon gold project, Buddadoo titanium/vanadium project, and other iron-ore and base metals assets.

The board said it had initiated the matching right process under the Fenix agreement, which allows Fenix to submit a counterproposal by April 17.

CZR’s largest shareholder, Creasy, has confirmed his intention to vote in favour of the RRJV transaction at the upcoming shareholder meeting, “in the absence of a superior proposal".