A deal between
Under the agreement, Antofagasta, controlled by the Luksic family of Chile, takes up 33 million shares of Tethyan, about 20% of the company, for US$20.5 million.
The share placement dents the Crosby offer for Tethyan, a A64-per-share bid announced last May that has attracted (after some withdrawals) slightly more than 1% of the shares of Tethyan.
Antofagasta also buys a half-interest in Tethyan’s 75% share of the Reko Diq project, for US$37.5 million. Tethyan’s plan for Reko Diq, in western Balochistan province near the borders with Iran and Afghanistan, was to bring the Tanjeel oxide copper deposit into production. Tanjeel has an indicated resource of 152 million tonnes grading 0.7% copper, with additional inferred oxide and sulphide resources.
Antofagasta takes on a work commitment of US$75 million for exploration and development on the property.
The deal with Antofagasta buys
BHP gets US$45 million once the agreement closes and US$5 million over four years to give up its back-in right.
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