Australian miner Zinifex has launched a A$775m takeover bid for nickel mining company Allegiance.
Allegiance is currently developing the Avebury nickel project on Tasmania's west coast which produces 8,500t per year and is due to be commissioned in the first quarter of 2008.
Allegiance says Avebury is "just the start" of its strategy to "vigorously grow in Zinifex's chosen base metals of copper, nickel and zinc".
Under the two-tiered offer structure, Allegiance shareholders will be offered $0.90 cash per share.
This will increase to $1.00 cash per share for all shareholders who accept Zinifex’s offer.
By staff writer
