In a statement issued by Murchison, it is noted that the Midwest share price increased by approximately 10 percent on October 9, due to speculation over the Murchison offer.
Murchison confirmed that it had been concerned that Midwest faced a potentially very significant tax liability in relation to the planned sale of a 50 percent interest in certain Midwest projects to Chinese group Sinosteel Corp. Murchison said that the higher offer came about after Midwest clarified its financial arrangements with Sinosteel.
Midwest has a joint venture with Sinosteel in relation to its two major projects in Western Australia - Weld Range and Koolanooka.
Commenting on the issue, Murchison's executive chairman Paul Kopejtka said, "Midwest clearly enjoys a strong relationship with Sinosteel and we are looking forward to gaining a full appreciation of that relationship and a better understanding of the benefits that the Sinosteel JV can offer the combined group in the future."