![]() ![]() In the case of Pallas Green, Minco found itself embroiled in a row over the direction of the exploration programme. It's a common problem when there's a mining multinational and a junior explorer involved together, and a classic case of the incompatibility between the multinational and the junior", Teeling told Minesite. ![]() It's the result of them having to negotiate from a position of weakness because they wouldn't be able to meet their cash calls. They're only getting the equivalent of US$3 a tonne when they should be getting at least US$7 a tonne. "It's a very poor deal for Minco and its shareholders. And he has no doubt that Minco shareholders are getting a poor deal. One person with strong views on the appropriate value of Irish zinc assets is mining entrepreneur John Teeling, whose Connemara Mining sits on an adjoining orebody just two kilometres down the road from Pallas Green. Xstrata, reckons the Irish mining community, is looking to take control of Pallas Green for a song.Ĭertainly, the markets took that view and promptly knocked 15 per cent off the Minco share price when the deal was announced. ![]() The deal still requires approval from Minco's shareholders, and may yet face some resistance, given the widely prevalent view that Xstrata has capitalised on Minco's shortage of cash and its inability to meet its share of the cost of the Pallas Green exploration programme. But the price, a somewhat paltry US$19.4 million, has raised eyebrows in many quarters. We didn't necessarily expect things to move quite so quickly, but within a matter of weeks Xstrata had tabled an offer to buy out Minco's 24 per cent stake in the Pallas Green lead-zinc discovery in County Limerick. The thinking was that juniors like Minco and Connemara Resources might well be taken out by their bigger international partners. Remember where you read it first! A month ago on Minesite we speculated that Lundin's takeover of the Irish exploration minnow Belmore Resources would lead to a round of consolidation in the Irish exploration industry. ![]()
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