PERTH (miningweekly.com) – Metals magnate Sanjeev Gupta has written to the shareholders of ASX-listed Havilah Resources, saying his company, GFG Alliance, had no intention of replacing the company’s management team and committed his business to a long-term partnership with the Australian company.

Havilah’s shareholders are set to meet on September 12 to vote on a A$100-million deal with GFG Alliance member SIMEC Mining, which would see the funding being provided through a series of equity placements in Havilah, at a premium of up to 35%, over a three-year period, potentially providing GFG with a 51% stake in Havilah, if all the equity placements are made.

Havila’s former director and company co-founder, Dr Bob Johnson, is reportedly attempting to block the transaction, with Havilah turning to the Takeovers Panel in an attempt to bar Johnson from voting his shares.

In his letter to Havilah shareholders, Gupta said that the proposed A$100-million funding is aimed as strengthening Havilah’s ability to generate future value from its portfolio through definitive feasibility studies, project development and commercial production.

“Together with Havilah’s skills and expertise, the significant cash contribution from our equity investment should deliver substantial value to all shareholders by unlocking the value of the early stage mining assets owned by Havilah.”

Gupta also noted that GFG intended to be a future customer of Havilah’s, providing the Australian company with access to an end-user steelworks and export facility at Whyalla.

“We expect Havilah products will be an important future input into GFG’s supply chain and our global steelmaking business. Importantly, as a principle, GFG expects any future supply contracts with Havilah to be negotiated on a commercial, arms-length basis.”

While expressing support for the current independent board and chairperson, Gupta said that GFG would look to increase its board representation ‘incrementally’, and in line with its equity position, reflecting its commitment to Havilah.

“We understand how important it is that the interests of all shareholders are protected and they all have a say in the company’s future,” he added.