Indophil still pushing for Alsons bid for Tampakan Mines

KORONADAL CITY, Philipines — The board of directors of Indophil Resources NL on Friday renewed calls for shareholders to vote for a resolution that would allow the Australian firm to sell its stake in the Tampakan copper and gold project to Philippine conglomerate Alsons Corp. Brian Phillips, Indophil board chairman, lashed out at Xstrata mining, accusing it of embarking on a misleading campaign urging stakeholders to reject the resolution that would give Alsons a third of the Tampakan project. Indophil owns 34.23% of the Tampakan project, its major asset, with the right to acquire another 3.27%. Earlier, Xstrata called on Indophil shareholders to vote against the resolution, claiming terms of the sale agreement were unclear. The firm has scheduled a general meeting in Melbourne on Nov. 12 where shareholders will vote for or against selling the company’s Tampakan asset to Alsons, a Filipino conglomerate with interests in agriculture, energy, real estate and mining industries in the country. Xstrata this week launched a direct mail campaign to Indophil shareholders, underpinned by a phone campaign, appealing to them as "fellow Indophil shareholders" to vote against the resolution, an Indophil statement said on Thursday. "Make no mistake — Xstrata is not interested in the welfare of other Indophil shareholders. Xstrata’s campaign is one of self interest, and Indophil shareholders should not be misled by Xstrata’s campaign," Mr. Phillips said. Reacting to Indophil’s bashing, Charlie Sartain, Xstrata Copper chief executive officer said: "We have consistently maintained that Xstrata would welcome the increased participation of Alsons in the project, if it were to result from a proper and transparent sales process. "However, we believe that voting against the resolution is the only way to ensure that the Indophil board provides an appropriate level of disclosure to all Indophil shareholders before it proceeds to sell Indophil’s only major asset," he added. "If approved, the resolution would allow Indophil to sell Tampakan to an ’undetermined’ buyer, at an undisclosed price and on undisclosed terms. This is unacceptable and highly unusual," Mr. Sartain said. Xstrata, which is the largest shareholder in Indophil with a 19.9% shareholding, owns 62.5% of the Tampakan project. The Tampakan project, which is being managed by Xstrata, is being pursued through Philippine affiliate Sagittarius Mines, Inc. Indophil and Alsons earlier forged a memorandum of intent for the latter to acquire the former’s stake in the Tampakan project. — Romer S. Sarmiento, BusinessWorld