Perilya Limited (ASX:PEM) Managing Director Paul Arndt has said that the takeover bid for an overseas mining company would not have a negative impact on operations in Broken Hill.
Perilya is presently in a binding pre-bid agreement to acquire the Toronto based Canadian company GlobeStar Mining Corporation.
The takeover bid will see Perilya become a copper/gold producer in the Dominican Republic thanks to GlobeStar's Mining assets. The deal is estimated at $ 186.1 million in which Perilya will take over 100% of GlobeStar Mining shares. The low-cost Cerro de Maimon copper/gold mine located inland from Santo Domingo on the Dominican Republic coast is the primary asset of the company.
Perilya is primarily a zinc, lead and silver producer at its Broken Hill project. The diversification attempt has the blessings of the 52% shareholder in Perilya, Zhongjin. The third largest zinc producer in China, Zhongjin is the financial muscle behind the cash and debt financing plan for the acquisition. It is also encouraging Perilya to look out for additional base metal and gold acquisition opportunities.