PERTH (miningweekly.com) – The shareholders of ASX-listed Albidon have approved the proposed takeover by Hong Kong-listed Jinchuan Group, through its wholly owned subsidiary Jin Tuo Investment.
In March this year, Jinchuan made a play for the base metals miner, offering to acquire all the outstanding shares in the company for A$0.0025 a share.
Jinchuan currently holds a 49.93% interest in Albidon.
Albidon said on Thursday that the merger was approved by a clear majority of the shareholders, even after discounting Jinchuan’s vote.
“I acknowledge that it has been a very tough few years for Albidon shareholders. However, with the merger today being approved, shareholders will now at least be able to recoup a portion of their investment and may be entitled to a tax deduction or capital loss, which may be of some value,” said Albidon chairperson Zhang Sanlin.
Albidon has found itself in an uncertain financial situation since share trading was first suspended in 2011, following the identification of certain operational issues at its Munali nickel mine, in Zambia.
The Munali mine was placed on care and maintenance in December last year, with Albidon engaging in a number of discussions with parties to locate a cornerstone investor willing to make a significant capital investment and assume a hands-on management role.
To top it off, an independent review of the Munali mineral resource decreased the indicated resource by some 25%, and the estimated nickel-containing resource by some 42%. The report also found that no measured resource had ever been reported for Munali, and that there was currently an insufficient basis to conclude that the reclassified resource could be mined economically at current metal prices.
Sanlin on Thursday reiterated that the merger was in the best interest of shareholders.
Albidon’s shares would now be suspended on the ASX, with shareholders and CHESS depository interest holders expected to receive their merger consideration within the next five business days.