PanAust Limited (ASX: PNA) receipt of a $2.30 per share cash offer from China’s Guangdong Rising Assets Management is a clear sign that China’s desire to control more major resources projects has not been sated.
This same demand could well fuel further mining deals globally as China continues to target the resources it requires.
For PanAust the offer from GRAM, which already holds a 23% interest, could well attract competing offers.
It plans to open its doors to GRAM, which could potentially allow the Chinese company to improve its indicative offer price.
The company is capable of funding development of its growth projects such as Freida River in Papua New Guinea or the Inca de Oro project in Chile.
Frieda River could produce 100,000 metric tons of copper and 160,000 ounces of gold annually and have a mine life of 18 years.
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