Turquoise Hill Resources Ltd. is preparing to sell all its majority stake in Inova Resources Ltd., an Australian mining company listed in Toronto and Sydney that has been on the block for some time.
Inova says Shanxi Donghui Coal Coking & Chemicals Group Co., Ltd. is offering 22 cents (Australian) per Inova share and Vancouver-based Turquoise Hill has agreed to tender all its majority stake if no better offer arises.
Based on about 718.8 million shares outstanding, Shanxi Donghui offer values Inova at nearly A$160 million — about 29 per cent above the previous public price.
Turquoise Hill, now a publicly traded subsidiary of Rio Tinto PLC, is focused primarily on developing the Oyu Tolgoi copper mining complex in Mongolia, has been divesting assets it held as Ivanhoe Mines Ltd.
Inova, formerly called Ivanhoe Australia, is a mining and exploration company operating in the Cloncurry region in northwestern the Australian state of Queensland.
On the Australian Securities Exchange, Inova's shares last traded at 17 cents (Australia). Inova closed in Toronto on Tuesday at 16 cents (Canadian).