Big news overnight. Only requires 50% shareholder approval so Xstrata won't be able to block it.
Indophil Resources NL (ASX: IRN) has received an encouraging proposal from Alsons Corporation (Alsons) which advises that it is making an offer with the support of Crosby Capital to acquire all of Indophil’s interest (34.23%) in the world-class Tampakan copper gold deposit (Alsons’ Proposal). The Alsons’ Proposal shows the strength of commitment and determination of Indophil’s Philippines partner to acquire the Tampakan asset. The Alsons’ Proposal is outlined in announcements from the Stanhill Consortium and Alsons, both dated 11 September 2008. In summary, Alsons has entered into discussions with Indophil regarding the potential acquisition of all of Indophil’s interest in Sagittarius Mines Inc. (SMI)1, which would not trigger any third party pre-emptive rights, and assume the intercompany loan entitlements owing to Indophil from SMI. Under the Alsons’ Proposal, Indophil would remain listed on the ASX and retain all non-Tampakan assets, including several promising exploration assets and significant cash reserves.
If the Alsons’ Proposal is completed, it will allow Indophil to realise the value in the Tampakan Project for cash. The Alsons’ Proposal is to purchase Indophil’s interest in the Tampakan Project at a price which values such interest at an equivalent value to the Stanhill bid of A$1.28 per share. The material net cash balance that would ultimately reside within Indophil, after transaction costs and applicable taxes, is expected to be returned to
shareholders in the most expeditious manner.
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