Zijin Mining Group Co Ltd says it has achieved significant progress since announcing its intention to make an all cash off-market takeover bid for the shares in Phoenix Gold Ltd that it does not already own at Aus$0.10 per share. Zijin is progressing confirmatory due diligence with ongoing cooperation from Phoenix.
Zijin’s executive director and vice president George Q Fang has welcomed the Phoenix Board’s decision to withdraw ‘Resolution 2 – Approval for Issue of Tranche 2 Shares and Strategic Alliance with Evolution Mining Ltd’. “A pre-condition of the Zijin offer was that Resolution 2 did not proceed. We appreciate the strong support from key Phoenix shareholders in achieving this outcome.
“Zijin is also progressing due diligence discussions and investigations with Phoenix and its advisors and welcomes their further cooperation in this regard.”
Zijin has lodged its application to acquire up to a 100% shareholding in Phoenix with Australia’s Foreign Investment Review Board (FIRB). Zijin’s wholly-owned subsidiary Norton Gold Fields is the intended bidder for the offer.
As foreshadowed in Zijin’s announcement of June 22, 2015, the proposed offer will be made subject to a limited number of conditions including a minimum 50.1% acceptance condition and FIRB approval together with ‘other conditions customary to an offer of this type’.
Zijin is continuing the preparation of its Bidder’s Statement and looks forward to presenting the offer to eligible shareholders in due course.