WA mining services company Mineral Resources has struck a deal with the receivers of collapsed vanadium hopeful Windimurra Vanadium, trumping rival bids from Swiss banker Germano Valle and Indian group Siva.
It is understood a deal will be announced today under which Mineral Resources will lead a consortium to recapitalise Windimurra, which collapsed earlier this year.
Receivers KordaMentha have been working on a deal ahead of a creditors' meeting next month.
However, until now Mr Valle had been thought to be the frontrunner for any deal.
Windimurra had spent about $200 million on developing the controversial project when it ran out of cash earlier this year, sparking its slide into administration and receivership because of an inability to raise the extra $80 million required to complete construction.
Since then, investor sentiment towards metals projects has improved markedly, led by a more positive outlook for the steel industry. Vanadium is used in specialty steel products.
The role in any recapitalisation process of Hong Kong trader Noble Group, which had a vanadium off-take agreement, remains unclear.
Shares in Mineral Resources are in a trading halt having last traded at $7.15.
Windimurra shares are suspended.
TSL Price at posting:
17.0¢ Sentiment: None Disclosure: Not Held
