Tremont Investments to acquire Australian junior Cradle Resources

Cradle Resources, an Australian specialty metals junior, is supporting a private equity-backed takeover from Tremont Investments.

Tremont and Cradle are partners at the Panda Hill niobium project in Tanzania.

Tremont’s cash offer of $0.33 per share is roughly a 40% premium on Cradle’s price, valuing Cradle at $55 million ($US41 million).

Tremont already owns nearly 20% of Cradle and 60% of Panda Hill.

Ian Middlemas, Chairman of Cradle, says the offer gives shareholders a chance to realise their investment in full for cash.

After directors and shareholders, representing 45.5% of Cradle, indicated they would vote in favour of the deal, the parties entered into a scheme implementation agreement.

The proposed acquisition will be subject to the approval of Australia’s Federal Court and the Foreign Investment Review Board (FIRB), as well as Tanzania’s Fair Competition Commission.