TORONTO (miningweekly.com) – China Sci-Tech Holdings has agreed to buy TSX-listed Chariot Resources for C$0,67 a share, or a total of C$244,5-million, the Canadian firm announced on Monday.

The news represents the latest in a list of both public- and private-owned Asian investment in Canadian resource companies, including the acquisition last year by China Investment Corp of a 17% stake in diversified miner Teck Resources.

Chariot's main asset is a 70% stake in the Mina Justa copper project, in Peru, and the company said last year it would accelerate a plan to seek a buyer for itself, in response to pressure from shareholders.

Since then, financial adviser RBC Capital Markets contacted more than 60 potential buyers, of which 20 parties entered into confidentiality agreements and conducted due diligence, Chariot said.

The price agreed to with Hong Kong-listed China Sci-Tech represents a premium of about 52% based on the volume weighted average price of Chariot's shares for the 20 days before it announced on February 22 that it was in exclusive negotiations with a then-unnamed party.

The price is a 54% premium to the day before Chariot CEO Ulli Rath announced at a rambuctious shareholders meeting that he would speed up the sales process.

The China Sci-Tech transaction has the backing of Chariot's board, as well as its largest shareholder, Lundin Mining, whose chairperson Lukas Lundin last year led an attempt to oust Rath and the rest of the board.

In total, Lundin, shareholder Solway Finance and directors and officers of Chariot have agreed to vote the equivalent of 36,2% of the company's shares in favour of the deal.

The acquisition requires approval from two-thirds of Chariot's shareholders to succeed, as well as the approval by a majority of the votes cast by China Sci-Tech's shareholder.

The arrangement is expected to close during Chariot's first fiscal quarter in 2010, the company said.

It is not subject to a due diligence or financing condition.

Shares in Chariot Resources gained 4,8% on Monday, to C$0,65 apiece by 16:23 in Toronto.

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