Indophil Resources NL
(ASX:IRN) will make a US$40 million share placement to one of the Philippines’ largest companies, San Miguel Corporation.
The mineral explorer will place over 48 million shares at $0.86 per share, representing around 10.1 per cent of Indophil’s issued shares after the transaction is complete.
San Miguel is currently conducting due diligence on Indophil to decide whether to submit a control proposal to Indophil, and both companies are in a binding exclusivity period until early next year.
CEO Richard Laufmann says San Miguel is a diversified and global corporation that is strategically important for the development of Indophil’s mining interests.
The share issue and receipt of funds is expected to be completed by the end of this week and doesn’t require any shareholder approval.
Indophil Resources moved out of the red in the first six months of 2010 to report a profit of $6.7 million.
