Mick Davis' X2 out as bidder for Barrick Chile copper mine -sources

Wed Jun 17, 2015 5:52pm EDT
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By Silvia Antonioli, Nicole Mordant and Euan Rocha

June 17 (Reuters) - Former Xstrata boss Mick Davis' X2 Resources, long considered a front runner, is out of the race for a stake in Barrick Gold's Zaldivar copper mine in Chile after it was outbid in the first round of the sale process, according to three sources close to the matter.

Rival bids for a stake of up to 50 percent in the mine, once dubbed as the "Andean ATM", were superior to the proposal made by London-based X2 Resources, a private mining group led by Davis.

"There were seven bids higher than that of X2," said a London-based banking source with knowledge of the matter. "They couldn't make the numbers work."

X2 and Barrick declined to comment.

Reuters reported earlier on Wednesday that X2, and rival miner Glencore, were among companies that placed bids last week for two Anglo American copper mines in Chile, citing sources.

The deadline for second round bids for Zaldivar is early July, said two industry sources based in Canada.

Analysts have put a price tag of around $1 billion on a 50 percent stake in the mine, which Barrick put up for sale in April as it strives to cut $3 billion off its debt pile by year end.

Chilean copper miner Antofagasta Plc was one company interested in Zaldivar, but it was not clear whether it would be a second round bidder, said another mining industry source with knowledge of the situation.   Continued...