OZ Minerals is close to announcing the sale of its Martabe gold...

OZ Minerals is close to announcing the sale of its Martabe gold mine in Indonesia, which is tipped to go to a vehicle headed by former OZ Minerals director Owen Hegarty.

The possible sale follows a $2.6 billion bid for the debt-laden miner by China's Minmetals.

Announcing the surprising takeover earlier this week -- a move that has kept the company from going into administration -- OZ Minerals said it was moving ahead with the sale of Martabe and its Golden Grove polymetallic mine in Western Australia, which could add further upside to Minmetals' 82.5c a share offer.

Minmetals' offer will increase if the aggregate net sale proceeds from those two assets exceed $425 million.

Its shares are still trading below the offer price, closing at 65c yesterday.

The Melbourne-based miner has a February 27 deadline set by its banks to sort out its financial issues, which include finalising the asset sales, but OZ has sought another extension to allow the Minmetals offer to proceed.

If its request for an extension is granted, it would not have to get both the asset sales done before next Friday's deadline, but the Martabe deal is still expected to be announced before then.

One analyst said it was likely the shareholders could achieve some small upside, as it was possible the asset sales would go above $425 million.

The company said it would not comment on market speculation, but earlier this week chief executive Andrew Michelmore said the sale process for both assets had been competitive, with Martabe having eight companies sign confidentiality agreements to review the asset.

He added that the diversified miner had made good progress on the Golden Grove sale.

"We are talking to one party in particular, but a number of parties were interested," he said.

Citi values Martabe at $235 million and Golden Grove at $265 million.

.......................................................

RNG don't have the money $235M to effect the purchase of Martabe but their Chinese partner NWME does - also do some research on the top 20 shareholders - some very deep pockets there

RNG ending up with Martabe is a "long-shot", but you never know - this from RNG's last quarterly (note item (2)):-

Opportunity Evaluation

During the quarter the Company undertook the following opportunity evaluation activities:

(1) Completed due diligence and made an unsuccessful bid for a European gold project.

(2) Completed due diligence and made an offer for a Asian gold project. (I wonder if this is Martabe)

(3) Undertook due diligence and declined to bid on an Australian underground gold
resource.

(4) Identified four Australian gold and/or copper opportunities and submitted expressions
of interest.

(5) Signed three confidentiality agreements on publicly advertised sales of base metal and gold assets located in Australia.

Perhaps they do have the access to the required capital to effect a significant acquisition. !!! Time will tell.