OZ Minerals has been touted as the frontrunner to nab the Carrapateena copper-gold project in South Australia made famous by private prospector Rudy Gomez. Gomez made a name for himself in 2005 after putting his money into uncovering a massive intersection, and has since held onto most of the project through his company, RMG, with a third held by Canada?s Teck. With the Canadians now looking for a way out, independent research group Stock Resource?s managing director Grant Craighead says OzMin would be a prime candidate to take the project off their hands. According to Craighead, the proximity of the Carrapateena to OzMin?s Prominent Hill project provides obvious synergies. The miner?s $1 billion war-chest would also come in handy, especially as the project is expected to have a development timeframe of seven or eight years and cost a couple of billion dollars. However, Craighead points out that the shortlist of six bidders for the project could involve well-funded Chinese suitors and possibly include Xstrata and Equinox Minerals. Final bids for the project are expected to be received by the end of this month.
OZL Price at posting:
$10.70 Sentiment: Buy Disclosure: Not Held
