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Additional Information

Market:	TSX ASX
Sector:	General Mining
EPIC:	EQN

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Equinox Minerals

Equinox Minerals (ASX/TSX:EQN) is focused on the development of its 100% owned Lumwana Copper Project in Zambia. The Lumwana Copper Mine will produce an average of 172,000 tonnes per year of copper metal contained in concentrates for the first 6 years of its 37 year mine life. With construction largely complete, remediation of works following the transformer fire incident underway and commissioning continuing, the mine is expected to commence production by the end of 2008. Full production will be reached in 2009 at which time Lumwana will be Africa's largest copper mine.

Equinox Minerals in takeover offer for Citadel Resource Group

Monday, October 25, 2010

Australian copper producer Equinox Minerals Ltd (ASX: EQN) has made an agreed takeover offer for Citadel Resource Group Ltd (ASX: CGG) in a cash and share deal valued at about $1.26-billion.

The agreement to buy Citadel, which is developing Saudi Arabia’s biggest copper deposit, will see Equinox swap one share for every 14.3 Citadel shares, plus pay A$0.105 cash for each Citadel share.

This values Citadel at $0.517 per share based on Equinox closing prices. Citadel last traded at $0.42. The offer is at a premium of 23 per cent.

The deal, which comes amid rising copper prices, will give Equinox control over Citadel's portfolio of development and exploration assets in Saudi Arabia, including its flagship Jabal Sayid copper-gold project.

“Equinox has been following Citadel’s progress in Saudi Arabia for some time, with the Jabal Sayid project now positioned to become a significant copper mine,” Equinox chief executive officer Craig Williams said in a statement Sunday.

“The acquisition of Citadel will achieve our stated goal of securing a significant near-term development project in a mining friendly jurisdiction. It also expands our pipeline of exploration projects and complements the long-term growth ambitions of the group.”

Equinox said about 20 per cent of Citadel shareholders have entered into pre-bid acceptance agreements with the company “in the absence of a superior proposal that is not matched by Equinox.”

The deal includes a break fee of more than $12-million and gives Equinox a right to match any superior proposal that may arise.

The takeover offer is open until early November, the company said.

Equinox is 100-per-cent owner of its flagship Lumwana copper mine in Zambia, which it bought in 1999. The company is listed on both the Toronto and Australian stock exchanges.

Citadel is a base metals and gold company with a portfolio of development and exploration assets located in Saudi Arabia. It is listed on the Australian stock exchange.

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