Zinifex moves on Allegiance

Jinchuan Group Ltd has accepted Zinifex Australia’s offer for its 10.4 percent...

  Jinchuan Group Ltd has accepted Zinifex Australia’s offer for its 10.4 percent interest in Allegiance Mining NL.With Jinchuan's acceptance, Zinifex will own more than 90 percent of Allegiance and will move to compulsorily acquire the outstanding shares and de-list the company.Zinifex's CEO, Andrew Michelmore said the company was very pleased to have gained Jinchuan's support. "We view Jinchuan as a strategic partner, particularly given Jinchuan's leading position in China's commodity markets which are growing rapidly,” Mr Michelmore said. “We are excited by the potential for expanding the relationship between the companies in relation to other base metal projects," he said.Mr Michelmore said that the recently announced merger between Zinifex and Oxiana opened a whole new suite of possibilities to extend the relationship with Jinchuan. "The merged company will be a substantial producer of copper, nickel, and zinc, which are all metals that are part of Jinchuan's business. These markets present multiple opportunities to grow together," he said.Zinifex assumes a number of commitments with Jinchuan through its acquisition of Allegiance.Zinifex will implement Allegiance's commitments under the "Agreement for the Purchase and Sale of Nickel Concentrate" between Allegiance and Jinchuan, with the first delivery of concentrate from the Avebury nickel mine to Jinchuan expected in June or July 2008.Zinifex has undertaken that all the nickel resources discovered in Tasmania within the Agreement area will be produced and delivered to Jinchuan in accordance with the Agreement. Mineral products that are produced from Zinifex's Rosebery mine and any discoveries arising on Zinifex's existing Tasmanian exploration tenements are excluded from the Agreement.