Sagittarius Mines, Inc. (SMI), which controls the potentially rich Tampakan copper-gold project in South Cotabato, Mindanao, is bound to go through an ownership change with the signing by the Alsons Group of a memorandum of intent (MoI) to purchase the 34.23-percent stake of its partner Indophil Resources NL.
The Alsons Group, which is supported by Hong-Kong based Crosby Capital Partners, has submitted an offer to purchase Indophil’s interests in SMI, the Philippine company that holds the Tampakan FTAA (financial and technical arrangement agreement).
The Alson Group’s offer is equivalent to A$1.28 per Indophil share.
In a statement, Alsons chairman Tomas I. Alcantara said:
“Alsons is pleased at the prospect of becoming Xstrata’s local Philippine partner in the Tampakan project. Alsons’ strong roots and major projects in Mindanao will be an asset to the Tampakan project moving forward.”
The Alsons Group has been a minority partner in the Tampakan project since 2000, when it formed part of the Indophil-led consortium that acquired the project.
The Alsons Group is a leading Filipino conglomerate with interests in the agriculture, energy, real estate and mining.
Xstrata, the fourth largest mining company in the world, acquired majority interest in the Tampakan project and took over management in April 2007.
A previous offer to buy Indophil’s shares was made by Stanhill Resources Pty Limited, a corporate vehicle for a consortium led by Hong Kong investment bank Crosby Capital Ltd., the Filipino Alsons Group and Indophil chief executive Richard Laufmann.
The intra-corporate dispute in SMI between Xstrata and Indophil’s Laufmann started in June this year when Xstrata Copper, through its subsidiary in Queensland, offered to buy the 37.5-percent share in the company held by Indophil Resources for $1 per share.
Laufmann opposed the takeover bid and appealed to one of the major shareholders of the company, Lion Selection of Melbourne, to hold off selling its share following a counter offer from Hong Kong-based Crosby Capital Partners and Filipino conglomerate Alson’s Corp. to buy Indophil’s stake in SMI at $1.28 per share. — Marianne Go