Sandfire Resources is making a second attempt to acquire MOD resources.  Unlike a previous acquisition attempt in January, time it appears MOD is warming up to the offer.

If approved, the deal would give Sandfire direct access to MOD's 11,700-square-kilometer landholding across the Kalahari copper belt in Botswana, and give the company room to grow beyond the mine life of the DeGrussa copper-gold mine in Western Australia.  The T3 project in Africa is hoped to produce 28,000 tons of copper annually from an open pit over an 11.5-year mine life.

In January, MOD's board rejected Sandfire's bid of $0.38 per share, but not described the upped bid of $0.45 per share a "compelling offer".

"The acquisition ticks all of our boxes from an acquisition criteria perspective and is value-accretive based on the T3 asset alone, which, importantly, can be funded out of cash flow," said Sandfire managing director and chief executive Karl Simich.

"We see this partnership as providing the opportunity to maximise value from T3, which can be funded from Sandfire’s balance sheet and cash flows," MOD managing director Julian Hanna.  "Botswana is an attractive investment jurisdiction for mining and we look forward to working with the Government of Botswana going forward."