Merger Hinges on Regulatory Approval as Blackstone Targets High-Grade Copper-Gold Growth

Strategic Merger Announcement

Blackstone Minerals Limited (ASX: BSX) has announced a significant step forward in its growth strategy by entering into a binding scheme implementation deed with IDM International Limited. The agreement facilitates a merger of equals, whereby Blackstone will acquire 100% of IDM in an all-scrip transaction, thereby gaining control of the Mankayan Copper-Gold Project located in the Philippines.

This acquisition is a strategic move to diversify Blackstone’s portfolio, enhancing its exposure to critical energy transition metals such as copper and nickel, alongside precious metals like gold and silver. The exchange ratio agreed upon is 7.4 Blackstone shares for every IDM share, resulting in a merged entity where IDM shareholders will hold a majority 53% stake, with Blackstone shareholders retaining 47%.

The Mankayan Copper-Gold Project: A World-Class Asset

The Mankayan Project stands out as one of the largest high-grade undeveloped copper-gold porphyry systems globally. Historic drilling results reveal impressive intercepts, including 911 meters at 1.00% copper equivalent (CuEq) and 543 meters at 1.08% CuEq, underscoring the project's substantial mineral potential. Situated just 2.5 kilometers from the active Lepanto Gold Mine and the Far Southeast Porphyry, Mankayan benefits from proximity to established mining infrastructure and a world-class mineral district.

The project’s orebody remains open in multiple directions, offering exceptional opportunities for resource expansion. IDM has secured a 25-year Mineral Production Sharing Agreement (MPSA) renewed in 2022, and notably, the company has formalised a Memorandum of Agreement with local Indigenous Peoples, securing a vital social license to operate in the region.

Favourable Operating Environment and Synergies

The Philippines is recognised for its pro-mining regulatory environment and a history of successful mining operations by companies such as B2Gold and Oceana Gold. IDM’s established relationships and social license in the region provide a strong foundation for advancing the Mankayan Project.

Blackstone brings to the table extensive operational expertise, particularly from its experience with the Ta Khoa Nickel Project in Vietnam. This expertise is expected to generate operational efficiencies and cost-effective exploration techniques that can be applied to Mankayan. The merger also creates a diversified portfolio across nickel, copper, gold, and silver, aligning with global decarbonisation trends and the rising demand for energy transition metals.

Transaction Details and Next Steps

The merger is subject to customary conditions precedent, including shareholder approvals, court sanction, and regulatory consents. IDM’s board unanimously recommends the scheme, subject to no superior proposal emerging and an independent expert concluding the transaction is in shareholders’ best interests.

Key milestones include the dispatch of the Scheme Booklet to IDM shareholders in April 2025, a Scheme Meeting scheduled for mid-May, and anticipated implementation by late May 2025. Blackstone is also considering capital raising options to support transaction costs and project development.

Governance and Leadership

Post-merger, the Blackstone board will include Geoff Gilmour, an existing IDM director, while three current Blackstone directors will resign. This board reshuffle reflects the merged entity’s strategic focus and integration plans.

Blackstone’s Managing Director, Scott Williamson, emphasised the merger’s potential to deliver long-term value through near-term exploration upside and significant resource growth, underpinned by a supportive environment and strong regional partnerships.