Exploration company Kenmare Resources has announced a potential $100m investment by SGRF, the sovereign wealth fund of the Sultanate of Oman.

Kenmare had been subject to a takeover approach by Iluka since early last year, but overnight the Australian firm said it was terminating talks as shareholder support was not assured.

Iluka said the reason for termination was “based on information from Kenmare that its largest shareholder will not support the transaction at a level Iluka is prepared to offer”.

Iluka’s last offer in November was 0.007 Iluka shares per Kenmare share, lower than the initial 0.036 ratio rejected by the Kenmare Board.

The investment announced this morning is subject to a number of conditions - including the raising of at least another $75m in capital from other sources.

This year Kenmare has made material reductions to the sustainable costs of production in response to the decline in market prices, while heavy mineral concentrate and ilmenite achieved production records in Q3 2015. 

The planned investment would result in the company’s gross outstanding debt being substantially reduced.