An announcement and webcast conference for OZ Minerals Ltd (ASX: OZL) from Melbourne today showed that Minmetals will now pay a total of $A1.75 billion ($US 1.206 B) for the company minus Prominent Hill.
At today's conference the company said that if it retired all of its debt - except for $US105 M of convertible bonds on issue - it would have a cash balance of about $A600 M ($US416.2 M) after the revised deal was completed.
It would also have Prominent Hill to play with, its control block in uranium explorer Toro Energy Ltd (ASX: TOE) and the Martabe gold project in Indonesia for which there have been advanced negotiations with unnamed parties for a sale or, perhaps now, a joint venture.
Initially today when the trading halt was lifted OZ Minerals shares fell from its previous price of A55 cents to about A47c before recovering in late trading to close at A53.5c.
OZ Minerals chief executive Andrew Michelmore reportedly told today's conference that it was now unclear whether a sale of Martabe would go ahead. One mooted contender was private company Tiger Gold, a consortium led by former Oxiana Ltd chief Owen Hegarty (OZ Minerals came about from a merger of Zinifex Ltd and Oxiana).
An announcement by OZ Minerals today said it and Minmetals have signed a term sheet and are now working towards the execution of a sale and purchase agreement.
The proposed Transaction will require the approval of OZ Minerals' shareholders, and involves sale by OZ Minerals of its Sepon copper and gold operations in Laos, the Golden Grove polymetallic operations in Western Australia, the Century zinc-rich mine in Queensland, the Rosebery zinc-lead-silver operations in Tasmania, Avebury nickel also in Tasmania, Dugald River zinc-lead-silver in the Northern Territory and the High Lake and Izok Lake projects in Canada, we well as certain other exploration and development assets.