Cadan Resources Corp (fka CXD)

[basserdan]

China buys stake in Philippines mine

It's not Cadan, but with China seeking mining resources in the Philippines, it could open up some eyes to the 'market' there...


China buys stake in Philippines mine

2010-01-19 11:06

Australia approves Zijin's Indophil takeover

CHINA'S Zijin Mining Group will send offer documents to shareholders of Australia-based Indophil Resources on 18 January after gaining approval from Australia's Foreign Investment Review Board for a A$547m ($505m) takeover bid.

Undertaken through its totally-owned subsidiary, Golden Resources Mining, the deal will deliver Indophil's 34.2% stake in the Tampakan copper and gold project in the southern Philippines island of Mindanao to Zijin which is China's largest gold producer and third-ranked copper producer.

With an orebody of 2.2b t containing an estimated 12.8m t of copper and 15.2m ounces of gold, Tampakan is the largest undeveloped copper-gold deposit in South East Asia's Pacific rim.

Operated by Xstrata, which gained a 62.5% stake in the project in late 2006, it is scheduled to begin production in 2016, targeting initial annual output of 340,000 t of copper and 350,000 ounces of gold. Xstrata owns 19.9% of Indophil which it has agreed to sell to Zijin in lieu of a better offer.

Acceptance of the Zijin bid has been recommended by Indophil's board and follows similarly priced but unsuccessful bids from Xstrata and a consortium led by Indophil managing director Richard Laufmann.

In a statement to the Hong Kong Stock Exchange, Zijin chairman Chen Jinghe said the offer will close on 19 March, but left open the option to extend the period "in accordance with the Corporations Act of Australia". The offer is conditional on 90% acceptance.

The Tampakan copper-gold deposit is characterized as a major high-sulphidation epithermal deposit superimposed on an underlying porphyry copper system. It has been surveyed by a programme of more than 150 drill holes which found 0.2¨C0.4% Cu porphyry-copper style mineralisation at depths of up to 500m.

http://www.chinamining.org/Investment/2010-01-19/1263870474d33504.html