UK-based PE firm CD Capital acquires ASX-listed miner Verdant Minerals

Photo from Verdant Minerals' website.

UK-based private equity firm CD Capital Natural Resources Fund III LP (CD Capital) has agreed to acquire Australia-listed explorer Verdant Minerals in a deal that values the Australian mining firm at A$40.5 million ($28.6 million).

In a statement, Verdant Minerals said, CD Capital has agreed to acquire all of its issued shares, except for those held by Washington H. Soul Pattinson and Company, for A$0.32 per share. The valuation represents a 113-per cent premium to the closing price of Verdant’s share on March 8.

The deal could delist Verdant Minerals from ASX.

If approved, the agreement will inject much-needed funds into the financially-strapped Verdant and will provide capital for the advancement of the firm’s flagship Ammaroo Phosphate Project in the northern territory.

“The advancement of the Ammaroo Phosphate Project will require significant capital that, at the market capitalisation and share price prior to the offer, is highly unlikely to be raised from existing shareholders and without very significant dilution,” said Verdant Minerals’ managing director Chris Tziolis.

The agreement also makes CD Capital a majority shareholder of Verdant, with approximately 67 per cent. Washington H. Soul Pattinson and Company will continue to hold approximately 33 per cent of the shares of the minerals explorer.

The agreement is still subject to a number of customary conditions, including Verdant Minerals’ shareholder and court approval.

Aside from the scheme implementation agreement, both firms have also signed a short term loan facility agreement, which calls for CD Capital to advance an aggregate of A$800,000 in three tranches to the mining firm for the purpose of funding transaction costs in connection with the scheme and for general working capital purposes.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.