China's top nickel refiner, the Jinchuan Group, has agreed to
acquire an 11 percent stake in Australian miner Fox Resources Ltd
for A$17.86 million (US$15.8 million).
It's the second overseas deal for state-owned Jinchuan this week
after Canada's Tyler Resources Inc said Jinchuan agreed to buy it
for C$214 million (US$213 million) to gain access to copper and
zinc mines in Mexico.
Jinchuan will buy 18.8 million new shares for A$0.95 each, Fox
said. The offer price represented a 14 percent premium on Fox's
last quoted price before the announcement.
Fox has been supplying Jinchuan for more than three years with
nickel and copper from its Pilbara operations in Western
Australia.
Funds raised from the sale will be used to boost Fox's nickel
operations.
Fox rose 1.8 percent to A$0.85 in Sydney trading yesterday after
announcing the deal.
A Jinchuan representative will be invited to join Fox's board
after the initial share issue, Fox said.
Jinchuan, based in western China's Gansu Province, is no
stranger to Australia's mining industry. It holds stakes in several
Aussie firms including Allegiance Mining and Metals X.
The latest deal is subject to approval by Gansu provincial
government and China's central government, Fox said.
(Shanghai Daily January 10, 2008)
