(Reuters) - Australia's South32 Ltd said on Monday it has reached agreement to buy the remaining 83 percent of Toronto listed Arizona Mining for $1.3 billion in cash.
The offer of C$6.20 per share implies a total equity value for Arizona Mining of $1.6 billion, South32 said in a statement. The bid represents a 50 percent premium to Arizona's last close of C$4.13.
The directors of Arizona Mining, which owns the Hermosa Project zinc, manganese and silver assets, unanimously recommended that shareholders vote in favor of the transaction, South32 said in a statement.
South32, which already has a 17 percent stake in Arizona Mining, said it expects to complete the transaction in the September quarter. The deal is subject to shareholder approval.
South32 chief executive Graham Kerr said the company has been an active participant in the Hermosa Project and has a deep understanding of the high grade resource and surrounding tenement package.
(Reporting by Susan Mathew in Bengaluru; editing by Richard Pullin)