Tuesday, 13th June 2006 (2580 views)

UK-based Vedanta Resources has made a move into the gold market, announcing it has made a C$68.45 million bid for Canada's Sterlite Gold, which has significant gold interests in Armenia.

The equivalent of C$0.258 a share in cash, the assets to be bought include a gold processing plant in Armenia's Ararat and an open pit gold mine in Zod.

As part of the agreement, Vedanta will also be acquiring Twin Star International, holder of 55 per cent of outstanding Sterlite Gold shares for C$37.68 million.

In a statement Vedanta said that the Zod mine has the potential to become a world leader, adding the acquisition was "an attractive low risk exposure to this commodity" allowing the company to demonstrate "proven project development skills".

Sterlite said that its board of directors had unanimously recommended the acquisition to its shareholders.

 

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