INMETALS Resources (MMR) Limited, a Hong Kong-listed company, intends to make an all cash offer to acquire Equinox Minerals Limited and its Lumwana Mine for approximately 6.3 billion Canadian dollars.
Under the terms of the proposed offer, MMR will acquire all of the outstanding common shares in Equinox not already owned by it for $7.00 Canadian dollar in cash per Equinox share.
MMR chief executive officer Andrew Michelmore said, “Our offer for Equinox aligns with our strategy for growth and enhancing our global production portfolio.
For Equinox shareholders, the offer is compelling since it provides a substantial premium and certainty of value and provides a superior alternative to the proposed acquisition by Equinox of Lundin.
Mr Michelmore said this in a statement released in Lusaka yesterday.
He urged Equinox shareholders to reject the Lundin acquisition at the shareholders’ meeting to be held on April 11 and tender their shares into MMR’s offer to take advantage of MMR’s forthcoming offer.
The offer includes Equinox’s Lumwana Mine in North- Western Province. Lumwana mine is a substantial copper producing asset, with current production of 145,000 tonnes per annum and a stated mine life of 37 years.
Equinox has indicated the potential ability to expand Lumwana to 260,000 tonnes per annum of copper within the next five years.
In addition, Equinox’s Jabal Sayid project in Saudi Arabia, with a forecast average copper production of 60,000 tonnes per annum, is expected to commence production in 2012.
Mr Michelmore said through the application of its own management and technical expertise that it can deliver and enhance Equinox’s current operations and stated expansion plans.
In response Equinox Minerals Limited says its has noted Minmetals Resources Limited unsolicited offer to purchase all of the outstanding common shares of the company and the board of directors will be meeting to consider the proposal and will comment further following careful consideration of the terms and implied value for Equinox.
[Zambia Daily Mail]
If this is the cost of Lumwana how come Nkana Mine was sold for US$ 7.0m? this is even cheaper than a football player in the Premier League. Someone somewhere will pay.
there is no windfall tax,zed is a gold mine for these people
china man taking over. That will be bad. Chinese managers hate Africans. Yaba. They want to act like telecel, smart centre and supreme. Pa Zambia fye. Why don’t we tell these guys to list on LUSE also so that we can have a Zambian share.
Haha, saw their stocks hit a huge high last week. It beats me how Zambian’s are blind to this. We sell these mines for peanuts. Haha. Although I must say the money is not For Lumwana alone but For Equinox, a much larger entity.
The curse on Zambia continues to be exploited
#4 Abena CB Lumwana is Equinox’s only operating mine and their premier property. Their second mine is still been developed in Saudi Arabia. It will be producing 60 000 tons of copper per annum. Equinox is a new and junior miner. Lumwana is their first mine.
This deal must be blocked by GRZ by all means.. We cannot have a secenario where all mines are owned and controlled by the Chinese! Chambeshi Copper Smelter, Luanshya Copper Mines, NFC Plc, Albidon Mining all Chinese already!. This would be neo-colonialism. We might as well bring back ZCCM and take over all the mines and the Chinese just buy from us.
Tebogo Mogau @ 6 – You’re right about that. The only other projects they have are exploratory projects in a number of countries.
Kasama Boy @ 1 – Buying Lumwana mine is like buying a brand new car whereas the Nkana mine at the time was like buying a clanker for which you needed tons of money to get roadworthy.
Choncholiz taking over Zambia and Africa for sure.This is bad,really bad.I have nothing against my Asian bro but there conditions sucks.
Tebogo thanks for the correction, although I still think Equinox is significantly larger than Lumwana.
No 10 why do you think Equinox is bigger than Lumwana? What logic are you using? Equinox has only two project one in Egypt and Lumwana in Zambia. The Egypt project is not in production.
Its amazing how Zambian do not understand this things and turn to politics. The company taking over Equinox is a listed company in HongKong but of Chinese origin. Its a public company were so many people around the world own shares on the Hongkong stock exchange. Zambian are free to buy shares as well just as they were free to buy shares in Equinox which has a dual listingin Australia and Canada. The problem is you want government to buy you the shares… still in the dreams of Kaunda era
What is the value of “goodwill on acquisition”?
Miners in Lumwana, save money to buy bullet proof vests, here comes the Chinese. Sad development indeed.
Kwena number 13… Ha ha. I guess you are right. But where are we heading to. These investors can now walk in and out of this country. Dont we have some thread of integrity sure…. Koma eeeeh!:((
Ku South Africa;
Very simple logic if you must know. I am not going to ignore the amount that their entity has put in to make the Lumwana project a billion worthy project just because I am a Zambian. Having access to their website and knowing they are publicly listed does not constitute an understanding of the valuation process that leads to figures like 6.3 billion Canadian dollars. If I pump 3 million dollars in Nchanga Rangers today and in 3 years sold talent for 18 million pounds/kwacha as a newly listed football company would not entail that Nchanga Rangers was necessarily worth that all along. Matter of fact one can argue my 3 million risk over a million worth club yielded 15 million. That has been your uneducated leaderships poor reasoning behind seeking investors. What we…