CZR Resources (ASX:CZR) determined that the proposal from the Robe River Iron Associates joint venture is superior and more favorable to shareholders than Fenix Resources' (ASX:FEX) takeover offer, according to a Friday Australian bourse filing.
Robe River's offer to acquire CZR's interest in the tenements in its Robe Mesa iron ore project in Western Australia for a cash consideration of AU$75 million is a "significant" premium to Fenix's offer, the filing said.
The company has now triggered the matching right process as per the terms of the binding implementation agreement with Fenix, the filing added.
CZR will now assess any counterproposal from Fenix to determine if it offers a better deal for shareholders than the Robe River JV offer, the company said.
The company's largest shareholder confirmed the intention to vote in favor of the Robe River JV offer, barring a superior proposal.
The CZR board will continue to recommend the Fenix offer until the matching right process concludes, the company added.
Shares of the company rose past 8% in recent Friday trade.
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