JOHANNESBURG (miningweekly.com) – The Aluminum Corporation of China (Chalco) has another 30 days to make a takeover offer for 60% of Mongolian coal miner SouthGobi Resources, TSX-listed Ivanhoe Mines said on Tuesday.
Ivanhoe, which is looking to sell its 57.6% shareholding in SouthGobi for $8.48 a share, said Chalco had agreed to make a takeover bid on or before August 3.
Chalco announced its intended bid on April 2. Since then, Ivanhoe has entered into a lock-up agreement with Chalco and has agreed to tender all its SouthGobi shares, on a prorata basis, to Chalco.
With the exception of the 30-day extension to the date of launching the bid, all other terms and conditions of the lock-up agreement remained in place.
The proportional offer from Chalco would be made by way of a takeover-bid circular under British Columbia law and would be made to all SouthGobi shareholders.
Ivanhoe, which is to change its name to Turquoise Hill Resources, said in April that it would use the proceeds from the SouthGobi share sale to fund the continued development of its Oyu Tolgoi copper/gold/silver mine, in Mongolia.