Indophil Resources (ASX:IRN) is looking for potential buyers after Zijin Mining Group Co. decided to terminate a takeover offer relating to the open pit ban in South Cotabato province of the Philippines which impacts its Tampakan Copper-Gold Project.
Zijin Mining Group Co. is China's largest gold producer and the third largest copper producer.
It had offered to acquire Indophil Resources at AUD$545 million at the rate of $1.28 per share, but now in view of the ban was backing out. The bureaucratic problems and delays in the Phillippines and China have caused trouble for the largest owner of Indophil which happens to be Xstrata.
Indohpil owns 37.5% of the Tampakan project which happens to be its flagship asset. It is a massive gold and copper mine which was affected by the passing of a provincial law that banned open pit mining. While the law has not been gazetted, it has made investors in the $6 billion project nervous.
While President Benigno Aquino has promised to protect the interests of the mining community and the environment, it has yet to be seen in action. The Tampakan and other projects have not yet been given the go ahead.
Shares in Indophil where trading at AUD$0.66 at 2pm AEST.