Iluka Resources Limited
(ASX:ILU) has confirmed it is in ongoing talks with Dublin-based mining company Kenmare Resources.
The companies have been in continued contact since the original announcement on 17 October last year. Iluka has conducted several visits to Kenmare offices and the miner’s main asset Moma Titanium Minerals Mine in north east Mozambique. Due diligence is well progressed but no deal has yet been agreed upon.
Kenmare says it is also in talks with its lender to avert any potential default relating to a January 31 budget requirement and is looking to find some sustainable re-financing.
Kenmare was prompted to make a statement confirming its discussions after recent share price movements on the London and Irish stock exchanges. However Iluka maintains that while conversation continues there is no guarantee an offer will be made.
Iluka Resources made a net profit of $11.7 million for the 2014 financial year.
