Minmetal Resources has made an offer to acquire all the common shares of Equinox Minerals for C$6.3bn (US$6.5bn) at C$7.2 a share.
The acquisition will mark Minmetal’s first investments towards copper belt in Africa and the Middle East.
Equinox’s assets include the Lumwana mine in Zambia and the Jabal Sayid project in Saudi Arabia.
The Lumwana mine currently produces 145,000t of copper a year and will be expanded to produce 260,000t of copper a year within the next five years.
The Jabal Sayid project is expected to start production in 2012 with an estimated copper production of 60,000t a year.
Minmetal Resources CEO Andrew Michelmore said Equinox shareholders should reject the bid recently made by Lundin to accept the Minmetals offer.