MANILA, Philippines - The Chinese Zijin Mining Group Co. Ltd announced yesterday its intention to make a takeover offer for Indophil Resources NL, a funding shareholder of Sagittarius Mines, Inc. (SMI).
If the acquisition is successful, the Zijin Mining Group would hold a 37.5 percent interest in SMI’s Tampakan copper-gold project in the southern Philippines.
Xstrata Copper, which holds a 62.5 percent interest in SMI, yesterday expressed its support to the proposed takeover offer by Zijin.
Xstrata said it had reached an agreement with the Zijin Mining Group regarding Xstrata’s 19.9 percent stake in Indophil, subject to certain conditions.
SMI president Peter Forrestal said SMI would welcome the introduction of a party, such as Zijin Mining Group, that has the capacity to support the advancement of the Tampakan project.
“The Zijin Mining Group is a well-established international mining company with a focus on the exploration and development of gold and base metals.
“Their interest in Indophil demonstrates the potential of the Tampakan project which is one of the largest undeveloped copper-gold deposits in South East Asia.
“We remain focused on completing the Tampakan project feasibility study in the first half of 2010 and finalizing specialist studies and stakeholder engagement activities for the EIA in the second half of next year,” Foresstal said.