SANTIAGO, Chile, Dec 23 (Reuters) - Chilean copper company Antofagasta Minerals (ANTO.L: Quote, Profile, Research) said on Friday it agreed to a $133 million joint venture with an Australian company to explore and exploit Pakistan copper and gold properties.
Antofagasta said the agreement involved the purchase of a 19.95 percent stake in Australia's Tethyan Copper Co. (TYC.AX: Quote, Profile, Research) for $20.5 million as well as an outlay of $37.5 million for a 50 percent equity stake in Tethyan's Pakistan mineral properties.
The agreement, announced out of London and subject to approval by shareholders and regulators, also involves a commitment to invest up to $75 million in exploration and development.
Tethyan's principal assets are a 75 percent interest in the exploration license for the Chagai Hills region of North West Pakistan, known as Reko Diq. The region is part of an extended copper-gold belt.
"Tethyan has reported total indicated and inferred mineral resource estimates at these properties of 1,213 million tonnes with a copper grade of 0.58 percent and a gold grade of 0.28 grams per tonne," Antofagasta said in a statement.
Tethyan is currently the subject of an unsolicited takeover offer from Skafell Pty Ltd., which is a subsidiary of Crosby Capital Partners Inc. and IB Daiwa Corp. (3587.Q: Quote, Profile, Research).
The Tethyan board has recommended that its shareholders reject the Skafell takeover offer and accept the Antofagasta proposal.
(SOURCE)