oz minerals directors resign, page-14

Dogboy1 ,is this what you want ?

OZ Minerals has made a call for suitors interested in buying all of, or a stake in, the company or its projects.

This comes as the embattled miner struggles to refinance debt with a consortium of banks.

In a dramatic move last night, OZ said directors had resolved to expedite all avenues available to address its lack of available cash, which had dropped significantly this month.

The company "will consider approaches in respect of acquisition of interests, including controlling interests, in any of its assets, or approaches from parties wishing to acquire some or all of the company's shares," OZ chairman Barry Cusack said.

"We are also examining all options available for the issuance of new equity."

Goldman Sachs JBWere has been brought in to advise OZ on developments.

The situation has rapidly escalated since last week, when OZ said it was unlikely to meet its debt requirements and flagged asset sales of its flagship Prominent Hill and Martabe projects.

OZ's cash position rapidly deteriorated, from $405 million on November 30 to $279.4 million two days later, largely because of provisional pricing charges due to sliding metals prices.

OZ has put its shares in suspension until December 29 as it struggles to refinance two separate debt facilities, one of $US420 million ($596 million) and the other of $US140 million.

The company had been negotiating with its existing banks and prospective new lenders to refinance with a new debt facility, but one of the potential new lenders has pulled out. The company had said it was trying to satisfy unspecified conditions necessary to secure the January 31 extension.

"Negotiations with the company's banks continue and OZ Minerals will make a further announcement as soon as possible," OZ said last night.

"However, a number of conditions have to be met before this can occur, and discussions are continuing."

The move to appoint Goldman Sachs and invite suitors will also put pressure on the banks during negotiations.

Compounding OZ's problems, last week French bank Societe Generale alleged a separate debt facility was in default -- a statement OZ contests.

BHP Billiton will undoubtedly be floated as a potential suitor for OZ, though the company's zinc, nickel and gold operations could prove unappealing to BHP.

Another potential suitor, Rio Tinto, is struggling with its own debt problems.

BHP has already been floated as a prime candidate to buy OZ's crown jewel, Prominent Hill in South Australia.

OZ's fall has been swift since it was formed in June by the merger of Oxiana and Zinifex with Zinifex boss Andrew Michelmore at the helm.

Since then, the share price has fallen from around $3 to its last trade of 55c, partly due to the collapse of metal prices, in particular zinc.

OZ made last night's announcement after its scheduled December board meeting.

It had previously brought on board Adelaide-based Gryphon Partners to assist in the sale of some of its assets.