Chinese miner expected to seal entry into Tampakan mine by Feb.

BusinessWorld
GENERAL SANTOS -- A response to the offer of Chinese firm Zijin Mining Group Co. Ltd. to buy Australia’s Indophil Resources NL will come no later than February, based on Australian laws.

A successful deal would allow Zijin to own up to 37.5% interest in the Tampakan project in South Cotabato, which is being pursued by Indophil Resources’ Philippine affiliate Sagittarius Mines, Inc.

Early this month, Zijin offered to buy out Indophil, a firm listed at the Australian bourse with at least 2,000 shareholders, some of whom are from the Philippines. The Indophil Resources board has recommended to shareholders Zijin’s bid in the absence of a superior proposal from other parties, Gavan Collery, Indophil Resources corporate affairs manager, said in an e-mail.

Zijin, the largest gold producer and third-largest copper producer in China, made a takeover offer to Indophil Resources of A$1.28 per share, or a total of A$545 million (on a fully diluted basis). The Chinese firm is expected to file a formal bidder’s statement on Dec. 18.

A source privy to the negotiations told BusinessWorld that the Australian law requires the offer to be under consideration by shareholders for at least 30 days after all the formal documents have been issued.

Mr. Collery noted that Zijin is seeking to buy Indophil Resources because the latter has a one-third interest in the Tampakan project, a major asset in Indophil Resources’ portfolio. Read More....