Fortescue swoops on Red Hawk, secures 90% stake

Fortescue Metals Group (ASX: FMG) has increased its majority stake in junior iron ore miner Red Hawk (ASX: RHK) to more than 90%, triggering a compulsory acquisition process.The Australian Stock Exchange will halt the trading of Red Hawk’s shares on February 25, with delisting to follow at a later date.Fortescue, through its wholly owned subsidiary FMG Pilbara, initially approached Red Hawk in late January with a A$254 million ($160 million) takeover offer. In early February, the world’s fourth-largest iron ore producer raised its bid from A$1.05 to A$1.20 per share, ultimately securing a 75% interest in the company.Red Hawk shareholders who have not yet accepted Fortescue’s latest offer may still do so before it closes on March 3, unless extended or withdrawn.With the acquisition of Red Hawk, Fortescue adds to its portfolio the Blacksmith project. This is an undeveloped iron ore deposit, located 30 kilometres west of Fortescue’s Solomon operations in Western Australia. With a mineral resource estimate of 243 million tonnes, the project represents a strategic opportunity for Fortescue as it seeks to expand its presence in the steelmaking raw materials sector.The acquisition aligns with Fortescue’s broader growth strategy, reinforcing its position in the iron ore market despite signs of weakening global demand.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com