Titanium minerals and zircon producer Kenmare Resources, which operates the Moma mine, in Mozambique, has terminated discussions with a consortium, comprising Oryx Global Partners and Michael Carvill, regarding the proposed buyout of the company.

Kenmare in March informed shareholders that it had received a nonbinding proposal from the consortium regarding a possible all-cash offer for the entire issued and to be issued ordinary share capital of Kenmare.

The company's board, together with its advisers, considered the terms of the initial proposal and unanimously rejected it on the basis that it undervalued Kenmare’s business and its prospects. However, in order to facilitate the consortium improving the financial terms of the initial proposal, the company offered to provide the consortium with access to limited due diligence information.

Since March, Kenmare has continued discussions with the consortium and has provided additional due diligence information, which also supported the consortium’s ability to progress its discussions with potential financing partners. In addition, the company engaged with the consortium on the terms and conditions of its proposal and other related matters.

During Kenmare’s most recent engagement with the consortium, it was made clear by the consortium that it would only be willing to proceed with an offer at pricing substantially below the initial proposal (the revised pricing).

The revised pricing was subject to a request for an additional period of due diligence to conclude financing and other arrangements. The board of Kenmare, together with its advisers, considered the revised pricing and unanimously rejected it on the basis that it significantly undervalued Kenmare’s business and its prospects.

“Kenmare supported the consortium in its due diligence process and gave the possible offer extensive consideration, despite its early stage and unsolicited nature. The board will continue to review all opportunities to create significant long-term value for all of our stakeholders, including our shareholders," says Kenmare chairperson Andrew Webb.

He adds that the board is highly confident in Kenmare’s prospects as an independent company and its ability to deliver on its strategic and operational objectives.

"Moma is one of the world’s largest titanium minerals deposits, with a multi-decade mine life, a consistent low-cost profile, and substantial inherent value. Kenmare remains on track to achieve its 2025 production guidance and has a strong order book for the second half of the year.

"The Wet Concentrator Plant A upgrade project continues to progress to plan, with commissioning on track to begin in the third quarter, ahead of the plant’s transition to the large Nataka ore zone. Mining in Nataka will secure long-term production from Moma and will support the company’s ability to generate strong cash flow throughout the commodity price cycle," he comments.

The consortium confirms in a separate statement that it was unable to reach alignment with Kenmare on its updated valuation and, as a result, has ceased engagement with Kenmare.

"Oryx Global Partners remains committed to its strategy of investing in high-quality assets that support the global energy transition and secure critical mineral supply chains and will continue with its measured and disciplined approach to investment selection," it adds.