Zijin Consortium gains majority shareholding in Monterrico copper/moly bid
mineweb.com
With the consent of more than half of Monterrico’s shareholder, China’s Zijin Consortium is closing in on its bid for the UK-based copper company.
Author: Dorothy Kosich
Posted: Friday , 13 Apr 2007
RENO, NV -
China's Zijin Consortium told Shanghai Daily that shareholders representing 50.2% of the voting rights in Monterrico Metals have agreed to Zijin's $182.3 million offer for the UK-based copper miner.
Originally, the consortium said it would pull out of the deal if Monterrico shareholders don't reach the acceptance requirement by April 13. However, Zijin said its offer will remain open until April 27.
Monterrico's main asset is Peru's $1.4 billion Rio Blanco project, which is expected to produce 191,000 tonnes of copper concentrate and 2,180 tonnes of molybdenum yearly.
However, Monterrico's largest shareholder, the Greater Europe Fund, has insisted that the fair value of Montericco ranges between $500 million and $1 billion. Therefore, the Zijin offer is undervalued.
The Zijin Consortium includes Zijin Mining, China's second largest copper producer Tongling, investment company Xiamen C&D. Zijin Mining operates eight copper and gold mines in China. |
