Chinese mining firm Zijin Mining Group has submitted a bid to take over Australian explorer Phoenix Gold (ASX:PXG). The Chinese firm offered to pay 10 cents per share. The offer valued the Australian company at $47 million.
Zijin has been on an acquisition spree as part of efforts to expand its portfolio. Just in May, it announced it acquired properties in Papua New Guinea and in Democratic Republic of Congo for over $700 million. “The company is open to opportunities around the world,” Zijin Executive Director and Vice President George Fang told Reuters. “It is a goal to find more gold or other assets.”
But its unsolicited takeover bid was promptly rejected by Phoenix. In a statement, the board of the Australian gold explorer said it rejected the offer because discussions with Zijin over the weekend failed to produce a better offer price. “Phoenix will continue to consider means to maximize value for the company’s shareholders including actively soliciting alternative proposals,” the explorer said.
In particular, the Phoenix Board said it was inappropriate to limit its ability to solicit and facilitate a superior proposal that could deliver greater value to Phoenix shareholders.
Besides gold, Zijin also produces copper and zinc. Phoenix has advised shareholders not to take any action.