SHANXI Donghui Coal Coking & Chemicals Group Co has completed its unconditional off-market takeover offer for the ordinary shares in ASX-listed Inova Resources. The offer closed at 7pm Melbourne time on November 14 and at the time Shanxi Donghui had acquired 95.37% of Inova’s ordinary shares as a result of acceptances of the offer.
Inova Resources’ Osborne Copper-Gold Project in northwest Queensland.
Given it had achieved at least 90% of acceptances for its offer Shanxi Donghui proceeded immediately with compulsory acquisition of outstanding Inova ordinary shares and has arranged for Inova to be removed from the official list of ASX.
Completion of the takeover was aided by major shareholder Turquoise Hill Resources divesting its entire interest of more than 108.5 million shares in Inova to Shanxi Donghui in early November for about Aus$90 million. This represented about 14.9% of the issued and outstanding ordinary shares in Inova.
Shanxi Donghui is a private company incorporated in China. It is not listed on a financial market or stock exchange in or outside China. The company is privately owned by the chairman Ya Ping Zhang and his brother Wei Dong Zhang. It was formed in 2003 to carry on the mining and production of coking coal, metallurgical coke and chemicals in Shanxi province in China.
Coal mining is the focus of the group with production capacity of up to 6.1 million tonnes of coal across 3 different mines in Shanxi province. The company also specialises in the production of metallurgical coke and chemicals including annual production of up to 2 million tonnes of metallurgical coke and up to 100,000 tonnes of methanol. Shanxi Donghui sells its metallurgical coke domestically and internationally to the United States, Japan, Europe and another 13 countries.
Inova Resources, formerly Ivanhoe Australia, is a mineral exploration, development and mining company operating in a stable jurisdiction in Queensland, Australia. It has had great success in discovering a series of mineral resources rich in copper, gold, molybdenum and rhenium on its Cloncurry area tenements in northwest Queensland. Key projects include the producing Osborne copper-gold operation; Merlin, the world’s highest grade molybdenum and rhenium deposit; and Mount Elliott, its flagship project, which contains one of the largest copper-gold, mineralized systems discovered in Australia.
Inova’s extensive tenement package is south of Cloncurry and consists of 5700sqkm of exploration tenements, including joint venture ground and EPM applications. Its exploration team has identified targets throughout the Cloncurry tenements with prospect metals including copper, gold, molybdenum, rhenium, lead, zinc, silver, cobalt and uranium.