Chilean Firm Buys into Asian Copper Mine
Chilean copper mining company Antofagasta will spend $133 million to become a partner in a huge Pakistani mining venture with an Australian firm...
Chilean copper mining company Antofagasta will spend $133 million to become a partner in a huge Pakistani mining venture with an Australian firm.
Antofagasta will pay $37.5 million for a half share of Tethyan Copper's interest in Pakistan's huge Reko Diq copper and gold project, The Age reported Tuesday. Tethyan Copper is based in Perth, Australia.
The Chilean company also will spend $20.5 million for a 19.9-percent stake in Tethyan Copper, a substantial premium to its current value. Antofagasta also will commit to investing a further $75 million on exploration and development.
Among other effects, the move is expected to scuttle a hostile takeover bid for Tethyan Copper that has been pursued by Hong Kong bank Crosby Capital.
News of the wide-ranging deal comes just days after Tethyan said it had, separately, paid $50 million for BHP Billiton's claw-back rights over Reko Diq.
The moves are Antofagasta's first outside South America.