Moly Mines hopes to complete Gulf Alumina buyout by December

Australian mineral development company Moly Mines is expecting to close its Gulf Alumina deal by this year December, reported a source aware of the matter. The ASX listed company is known to be trying to get its proposed buyout of the bauxite miner approved in the company’s shareholders’ meet scheduled in December.

Moly Mines, in its last quarterly update, had set a deadline for receiving internal approval for the proposed acquisition before the end of 2016. At the year-end meeting when the shareholders meet to take important strategic decisions they are expected to vote on the transaction.

The miner aims to relist the company on the ASX through the acquisition of the Gulf Alumina bauxite project at Skardon River, Australia.



Last month, Australian government had asked Federal Treasurer Scott Morrison to reject the effort by the Chinese investor Hanlong owned company to acquire Gulf Alumina. Expressing his doubt about the company’s integrity, Parliament Member for Leichhardt Warren Entsch said, “I have serious concerns about their motives… I will be expressing a very strong objection.”

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Ensch is heading a movement to stop Moly Mines from acquiring Gulf Alumina. According to some industry reports, Moly Mines have reported many cases of corporate misdemeanour in the recent past and too many red flags were raised which indicate at its dubious functioning. In fact, the company has been suspended from trading on the ASX since 2014.

Metro Mining, the single biggest shareholder of Gulf’s outstanding stock, has also tendered takeover offers for the latter. “The proposed transaction is subject to many conditions,” said a Metro spokesperson.