File image: IOL

JOHANNESBURG - Globally diversified mining and metals company South32 announced on Monday that it had agreed to acquire the remaining 83 percent of outstanding shares of Arizona Mining via a plan of arrangement, representing a fully funded, all cash offer of U.S.$1.3 billion.

Arizona Mining is the owner of the Hermosa Project, containing the high grade base metals Taylor deposit, the Central zinc, manganese and silver oxide resource and an extensive, highly prospective land package with potential for discovery of polymetallic and copper mineralisation in Santa Cruz County, Arizona.

Graham Kerr, South32 chief executive, said the all cash offer for Arizona Mining will allow them to optimise the design and development of one of the most exciting base metal projects in the industry. 

"Our deep understanding of this high grade resource and surrounding tenement package, and extensive experience at Cannington, makes us the natural owner of this project and ensures we are well positioned to bring it to development, delivering significant value to our shareholders," Kerr said.

Richard Warke, Arizona Mining founder and executive chairman, said South32's all cash offer represented a premium reflective of the nature of the Hermosa Project and allows shareholders to realize immediate value. 

- African News Agency (ANA)