South32 offers US$1.3B for Arizona Mining

After taking an initial 15% stake in junior zinc developer Arizona Mining (TSX: AZ) in April 2017 for US$81 million and boosting it to 17% over the next year for another US$23 million, South32 (LON: S32) is now offering US$1.3 billion in cash for the remaining shares, warrants and options it doesn’t already own. The $6.20-per-share offer represents a 50% premium to the junior’s last close and a total equity value for Arizona Mining of $2.1 billion. The two companies announced the agreement, along with a $67-million termination fee, on June 17, and the deal has been approved unanimously by Arizona Mining’s board. As a major shareholder and active participant on Arizona Mining’s board and technical committee over the last 18 months, South32 has had a ringside seat at the junior’s Hermosa zinc project, 80 km southeast of Tucson, Ariz., and 13 km north of the U.S. border with Mexico. Continue reading at The Northern Miner.