Diversified global miner South32 has launched a $1.3bn cash bid for the remaining 83% of shares in Arizona Mining it does not already own, securing what CEO Graham Kerr describes as one of the best base metal deposits available for a chunky premium. Despite its name, Arizona is listed in Canada, and its board and management, who own 34% of the shares, have endorsed and given their support to the bid of C$6.20 ($4.69) a share, a 50% premium above the closing price on Friday. South32 has already invested $100m since early 2017 to buy its initial 17% stake. Arizona owns the undeveloped but well-explored Taylor deposit, containing zinc, lead and silver in the US state of Arizona.

The latest resource data from the deposit estimates that there are 101-million tonnes of ore with a grade of 10.4% of zinc-equivalent mineralisation. There is also the central deposit, which contains zinc, manganese and silver, and, together with Taylor, makes up the Hermosa project. South32 was entering ...

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