Photo by: Bloombeg
KALGOORLIE (miningweekly.com) – Australia’s resources sector was a key foothold in Chinese major Zijin Mining’s globalisation plans, Norton Gold Fields executive director and chairperson George Fang told journalists on the sidelines of the second Diggers & Dealers conference.
He noted that Zijin, which recently took control of Norton Gold Fields, following a 20c-a-share takeover offer, was actively communicating with a number of potential partners in Australia regarding further transactions.
The takeover allowed Zijin to acquire a number of gold projects, most notably the Paddington operations, in Western Australia, which celebrated its thirtieth anniversary this year.
The Chinese miner also, in June, announced its intention to launch a cash offer for ASX-listed Phoenix Gold, offering the junior’s shareholders 10c a share in cash and valuing the company at $47-million.
At the time of the takeover offer, Zijin said it intended to undertake an immediate operational review of Phoenix, its assets and financial position. In particular, Zijin would assess possible synergies from Phoenix’s Castle Hill project, also in Western Australia.
The Castle Hill resource is estimated at 81-million tonnes at 0.94 g/t gold for 2.4-million ounces within the first 90 m of surface. Mineralisation at Castle Hill has been defined over a continuous strike length of 9 km and remains open in all directions.
While Phoenix has given no indication on its intentions of the Zijin offer, shareholder Evolution Mining has increased its shareholding in the takeover target to 19.8%, making Evolution Phoenix’s largest shareholder and potentially posing problems for any play that Zijin might make for the company.
Fang on Tuesday refused to comment on whether Zijin would look to increase its offer for Phoenix, saying simply that the process was "ongoing".
In addition to its Australian activities, Zijin had also gained a near 10% interest in Robert Friedland’s Ivanhoe Mines, in April, paying $85-million for its stake in the firm, while gold miner Barrick Gold also sold an interest in its Porgera mine, in Papua New Guinea, to Zijin and formed a strategic partnership with the Chinese firm.
Fang said on Tuesday that discussions with Barrick over other potential opportunities at Barricks’s other operations were also ongoing.
Barrick has effectively exited the Australian resource sector, except for a 50% shareholding in the Super Pit, in Kalgoorlie, which is being operated by joint venture partner Newmont Mining.