SYDNEY, June 23 (Reuters) - China's Zijin Mining on Tuesday out manouvered an attempt by Evolution Mining to boost its stake in Phoenix Gold, potentially triggering a bidding war for the Australian exploration company.
A placement to Evolution of A$5.7 million ($4.4 million)worth of shares priced at 9.2 Australian cents each was withdrawn from a general meeting of Phoenix shareholders on Tuesday, according to Phoenix.
Zijin on Monday launched a A$47 million offer for Phoenix after accumulating a 17.9 percent stake in the company, including the Geologic shares, conditional on removal of the placement.
There were strong expectations the Evolution placement would be rejected after Zijin told Reuters one of Phoenix's biggest shareholders, Geologic Resource Partners, agreed to sell its interest to the Chinese company in the absence of a better offer.
Withdrawl of the Evolution placement could pit two of the mining sector's most acquisitive predators against each other as they seek to grow in size.
Evolution already holds a 9.4 percent interest in Phoenix following an earlier 7.5 Australian cents per share placement.
Zijin last month announced two acquisitions for more than $700 million - in Papua New Guinea and Democratic Republic of Congo - after issuing shares to build a 10 billion yuan ($1.61 billion) war chest.
Undeveloped Phoenix gold mines would provide synergies with neighbouring gold operations owned separately by Zijin and Evolution.
Evolution snapped up Barrick's Cowal mine in Australia for $550 million, making it the second-largest independent gold producer listed in Australia. ($1 = 1.2975 Australian dollars) (Reporting by James Regan; Editing by Michael Perry)
Zijin Mining is a gold producing company based in China.
Zijin Mining holds various exploration projects in China and in Peru.
Its main asset in production is JILAU GOLD MINE in Tajikistan, its main asset in development is SHUIYINDONG in China and its main exploration properties are QUINGHAI, JINSHANGOU and ZIJINSHAND in China.
Its stock quote reached its lowest recent point on June 28, 2013 at 1.23, and its highest recent level on October 18, 2024 at 17.24.
Zijin Mining has 21 540 741 120 shares outstanding.