Friday, April 29, 2011

Globe says Chinese group eyes Lundin Mining, czx.v, tnr.v, sgc.v, tck, bhp, fcx, rio,,,,,,,,


  We have Chinese companies all over the investment place we are following again: Tongling bought into Canada Zinc Metals, Ganfeng Lithium buys a stake in International lithium IPO and now Lundin Mining is in the headlines. Now our target for Lundin Mining at CAD10.0 looks very conservative.

"We have very interesting situation here: company moves into Preliminary Economic Assestment of the Cardiak Creek deposit and stock is below than the recent financing at 0.77 CAD. How all situation with Lundin Mining will affect this M&A situation in Canada remains to be seen. Chinese Copper and Zinc giant Tongling already owns 36% of Canada Zinc Metals and Lukas Lundin has its stake in this company via Lundin Mining."

"What do you do when you have lots of dollars which are losing value by the day, hungry for growth population and you need to maintain a tricky status quo? You are going shopping. But not for US Treasuries any more after PIMCO's Bill Gross has dumped all his holdings. And if you happen to be China you are going shopping for Copper or Oil and Lithium will be next on your list after you control Rare Earths market. We have our Catalyst in action now.
  Now Lundin Mining with its stake in Tenke Fungurume can expect proper bids above CAD 10.0. Copper is set on fire in M&A space with this Chinese bid. Destiny of Big Copper project in Argentina - Los Azules and companies involved TNR Gold and Minera Andes will be even more interesting now.
  We have also other companies to watch now in our Copper squad: Revett Minerals, Copper Fox Metals, Canada Zinc Metals, NGeX resources, Conerstone Capital Resources, Sunridge Gold and others."

Globe says Chinese group eyes Lundin Mining

Lundin Mining Corp (C:LUN)
Shares Issued 581,849,452
Last Close 4/28/2011 $8.34
Friday April 29 2011 - In the News
The Globe and Mail reports in its Friday edition that unnamed sources say a Chinese consortium, led by Jinchuan Group, is preparing a potential bid to acquire Lundin Mining. The Globe's Jacquie McNish, Boyd Erman and Brenda Bouw write that the consortium group includes China's giant sovereign wealth fund, China Investment Corp. Jinchuan is China's biggest producer of nickel and cobalt. It owns a variety of mineral properties in mining frontiers such as Africa and Kazakhstan. Jinchuan recently signalled that it is on the hunt for mining properties in a variety of resource-rich countries, including Canada. Lundin, which has a current market value of about $4.9-billion, is currently in discussions with a number of potential buyers. The Chinese are the latest suitor to arrive at the table. The consortium has been eyeing Lundin since February, when it became the target of a hostile takeover bid by Equinox Minerals. The company could be worth as much as $11.70 a share in a takeover or almost $6.9-billion, says TD Securities analyst Greg Barnes. It is understood that a handful of U.S. and Canadian pension funds and private equity investors have also been invited to join the buying group."
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