Alsons Corp seeks one-third of Tampakan project
02-OCT-2008 Intellasia | GMA News
Oct 2, 2008 - 7:00:00 AM
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Filipino firm Alsons Corp has struck a deal with Australian miner Indophil Resources NL to acquire the latter's 34% stake in the world-class Tampakan copper and gold project in Mindanao.
Alcantara-led Alsons, which has an interest in agriculture, energy, real estate and mining, on Tuesday signed a memorandum of intent with Indophil, ending months of hostile takeover bids initiated by Swiss miner Xstrata Copper in May.
Alsons, supported by Hong-Kong-based Crosby Capital Partners, has submitted an offer to purchase Indophil's interest in Sagittarius Mines, Inc., the local company that holds the Tam-pakan financial and technical assistance agreement, at an equivalent value of A$1.28 per Indophil share.
The Tampakan project contains two billion tonnes of mineral deposits and is said to be the largest undeveloped copper deposit in Southeast Asia.
In May, Xstrata offered to buy the stake of Indophil in the Tampakan project, which is staunchly opposed by the local Catholic Church and environmental groups due to ecological, health and social concerns, for A$1 per share.
Stanhill Resources Pty. Limited, which is composed of Crosby and Alsons, later on offered to buy Indophil's interest for A$1.28 per share, which Xstrata eventually matched.
The Indophil board had recommended to shareholders Stanhill's offer over that of Xstrata, until recently when Alsons announced it wanted to buy out Indophil's stake in the Tampakan project, which straddles three provinces in the South.
Alsons had owned 5% of the Tampakan project, but sold it to Indophil, which has since increased its ownership of the project to 34.23%.
With Alsons now intending to acquire Indophil's share, its chair Tomas I. Alcantara on Tuesday hailed the memorandum of intent as a key development for the Alsons Group, which has been involved in the Tampakan project since 2000, when it formed part of the Indophil-led consortium that acquired the project.
"Alsons is pleased at the prospect of becoming Xstrata's local Philippine partner in the Tam-pakan project," Alcantara said in a statement.
"Alsons' strong roots and major projects in Mindanao will be an asset to the Tampakan project moving forward," he added.
Xstrata, the fourth largest mining company in the world, bought the majority interest in the Tampakan project and took over management in April 2007.
Sagittarius Mines is expected to complete its extended pre-feasibilty study of the project before the year ends.
In a separate joint statement, Alcantara and Indophil Chief Executive Officer Richard Laufmann cited the strong partnership between the two companies.
"The strong relationship between Indophil and Alsons goes back to more than a decade. We remain confident that [pursuing] the Alsons proposal [until it is completed] is a positive step forward for Indophil and its shareholders as well as for Alsons," they said.
Indophil was preparing a notice of meeting for a general meeting of shareholders in November.
Indophil and Alsons will finalise the terms of the deal before signing a binding contract, the joint statement said.
The Tampakan project straddles the towns of Tampakan in South Cotabato, Columbio in Sultan Kudarat and Kiblawan in Davao del Sur.
The Catholic Church has sought a halt to the mining venture, which it said threatens the environment, human health and food security.
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