Indophil Resources NL (IRN) said it had received and agreed to terms with Chinese mining giant Zijin Mining Group Company Limited for a takeover of Indophil shares at $1.28 cash per share. The offer price represents an 18% increase to the closing price of Indophil’s shares at 30 November.

Indophil said the proposed takeover remained dependent on certain regulatory and shareholder approval including from the Foreign Investment Review Board and 90% minimum acceptance from Indophil shareholders.

Indophil Chairman, Mr Brian Phillips, said that the Indophil directors were pleased to recommend the proposal.

“This is an excellent outcome which unlocks value for Indophil’s shareholders from the company’s minority ownership position in the world-class Tampakan Copper-Gold Project,” Mr Phillips said.

“It is also a positive outcome for the project and the people of the Philippines – Zijin is well positioned to fund its share of Tampakan’s capital expenditure estimate of US$5.2 billion.”

Indophil also noted the support for the bid from Xstrata, the company’s major shareholder, with a 19.99% holding in the company.

At the close Monday, Indophil shares were trading at $1.085.