michelmore hoses down counter-bid

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OZ Minerals boss Andrew Michelmore has sought to hose down speculation about a possible counter-bid to China-based Minmetals' $1.6 billion friendly takeover.

Responding to reports naming Canadian gold giant Barrick and local investment group RFC as potential gatecrashers, Mr Michelmore said the Minmetals proposal was the "one clear offer on the table".

"It provides a total solution for our refinancing and, in the absence of a superior offer, the board recommends it to shareholders as the best option," he said on the sidelines of a mining conference in Canberra.

OZ Minerals - product of the merger of mid-tier miners Oxiana and Zinifex - was forced into a fire-sale of its assets after running into trouble refinancing about $1.3 billion in debts in the face of the global financial crisis.

The Federal Government knocked back Minmetals' original takeover proposal because of the proximity of OZ Minerals' Prominent Hill copper-gold operation to the Woomera weapons testing range in South Australia.

Foreign investment regulators, however, waved through Minmetals' amended bid excluding Prominent Hill. The offer will now go to a shareholder vote on June 11.

In other developments, the separate sale of OZ Minerals' Martabe gold deposit in Indonesia to China Sci-Tech Holdings has also won approval from the Federal Government.

Former Oxiana chief executive Owen Hegarty was the frontrunner to acquire Martabe before being nudged out at the last minute a surprise bid from China Sci-Tech Holdings.

Events then took an unexpected twist when Mr Hegarty struck a deal with China Sci-Tech to run the planned mine and build a new regional gold miner.

"About six parties went through and visited the site," Mr Michelmore said.

"We were negotiating down to the final three - and China Sci-Tech Holdings was the best offer.
"As I understand it Owen approached China Sci-Tech after the deal was announced."