The largest shareholder of the now Zinifex Ltd-controlled Allegiance Mining NL is seeking approval to dispose of its stake in the nickel miner.
China's Jinchuan Group retains its 10.4 per cent stake in Allegiance and has not yet formally indicated what its intentions are with respect to this interest, Zinifex spokesman Martin McFarlane said Tuesday.
"Our understanding is that they have sought the flexibility to dispose of it should they choose to do so," Mr McFarlane said.
"As a result of the fact that they have an Allegiance shareholding, it does not automatically give them a stake in the merged Zinifex/Oxiana Ltd, due to the cash offer nature of Zinifex's bid.
Sweeping changes to Allegiance's board were announced Tuesday as Zinifex, a lead and zinc miner, lifted its stake in its target to 77.24 per cent through its $860 million takeover.
Allegiance directors Tony Howland-Rose, David Deitz and Eddie Lee have resigned from the board and will be replaced by Zinifex representatives Peter Cassidy, Anthony Barnes and Brett Fletcher.
Mr Fletcher will become the new chairman of the board.
Allegiance directors Barry Sullivan and Shi Peirong will remain on the board until Zinifex acquires a 90 per cent interest in the company.
Zinifex's takeover offer is due to expire on April 18.
