equinox not contemplating raising bid

FROM The West Australian

Equinox Minerals chief executive Craig Williams says he can see no reason to "remotely contemplate" improving the miner's $C4.8 billion ($4.86 billion) offer for Lundin Mining as fresh doubts were raised over its rival suitor's major growth project.

Lundin's board has rejected Equinox's cash-and-scrip offer in favour of a merger of equals with fellow Canadian miner, Inmet Mining.

However, since that deal was struck doubts have been raised over Inmet's Cobre copper-gold project in Panama because of moves by that country's government to repeal mining-friendly legislation.

In a conference call on Monday night, Lundin chief executive Phil Wright noted new concerns around Cobre, this time relating to a coal-fired power station needed to support the development.

"There's certainly now been a lot of doubt cast on whether this coal-fired power station will be approved," Mr Wright said.

"And that is a pretty material departure from what we looked at the time we did our due diligence (on the merger)."

Meetings for Lundin and Inmet shareholders to vote on their tie-up have been delayed until April 4.

Mr Williams said the doubts surrounding Cobre effectively made Equinox's "the only offer on the table" and the WA copper miner had no plans to revise its bid.

Equinox has proposed paying $C8.10 a share or 1.2903 shares and C1c for every Lundin share.