Independence stakes a claim on Windward as Creasy calls the shots

Shares in Windward Resources have soared following a rival bid for the junior miner from Independence Group.

Drilling at Nova-Bollinger nickel/copper discovery in WA.

A talisman of improving sentiment in the junior mining sector, WA nickel and gold explorer Windward Resources is the focus of interest two competing parties, including the $2.3bn market cap Independence Group.

Independence (IGO) today revealed itself as the mystery bidder for Windward (WIN), which holds ground surrounding its spectacular Nova-Bollinger nickel deposit in the Fraser Range region.

In lobbing a $20m, 19c a share offer, Independence trumps last month’s “funding arrangement” from aspiring gold producer Eastern Goldfields.

Calling the shots in this one is legendary prospector Mark Creasy, who discovered Nova and owns 27 per cent of Windward and 17 per cent of Independence.

Last year Independence acquired Sirius Resources, which owned Nova, for $1.8bn.

Eastern Goldfields (EGS) is chaired by the equally legendary Michael Fotios, who, among other feats, backed gold miner Northern Star and lithium producer General Mining.

Windward claims to be the third biggest landholder in the “underexplored and highly prospective” Fraser Range. The offer was at a 46 per cent premium to Wayward’s price ahead of a trading halt on September 16.

On September 9, Windward and Eastern Goldfields unveiled a compact by which Eastern agreed to inject $2.2m for a 14 per cent stake, at 12c a share.

Eastern also agreed to underwrite a $3.8m, one-for-four entitlement offer.

Prosecuting the new bidder’s case, Independence chief Peter Bradford said that as a portion of Windward’s tenement package was contiguous with the Nova mining lease there was a “clear rationale” for the bolt-on deal.

“The offer provides Windward holders with the certainty of cash at an attractive premium, removing the risk and uncertainty of exploration and the potential for further capital raisings by Windward in future.”

The deal, supported by Creasy and the Windward board, is contingent on the Eastern Goldfields funding deal not going ahead.

Windward shares soared 46 per cent on resumption of trading this morning. The stock traded at 5c at the start of the year.

Independence shares suffered the usual bidders’ droop, down 6 per cent.

The Australian accepts no responsibility for stock recommendations. Readers should contact a licensed financial adviser. The author does not own any of the stocks mentioned.