Chilean copper miner Antofagasta Plc said it had lifted its cash offer by 17 percent to Australian $158 million ($112 million) for Australian-listed Tethyan Copper Ltd, which is prospecting in Pakistan.
The increased offer of Australian $1.40 per share from Australian $1.20 had the blessing of Canada''s Barrick Gold Ltd, which has agreed to acquire 50 percent of Tethyan''s Reko Diq project and other mineral interests in Pakistan if Antofagasta''s bid succeeds. Barrick and Antofagasta have agreed to share equally in Tethyan''s 75 percent interest in the Reko Diq project as well as all of Tethyan''s rights, licences and permits held in Pakistan. Antofagasta already holds 14.85 percent of Tethyan''s stock.
Tethyan''s board has recommended shareholders accept Antofagasta''s offer, which is 5 cents above a counter offer tabled by Crosby Capital Partners subsidiary Skafell Pty. Ltd, in the absence of any higher bids.
Reko Diq is touted as a giant copper and gold project, containing 12.3 million tonnes of copper and 20.9 million ounces of gold in inferred and indicated resources.
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