exco shareholders approve cloncurry sale ...

[Source: thewest.com.au]

Exco shareholders approve Cloncurry sale
Kate Emery
The West Australian June 10, 2011, 7:26 am

Exco Resources shareholders took less than five minutes to approve the $175 million sale of its flagship Queensland copper project to Xstrata at a meeting in Perth yesterday that began with free drinks and ended with applause.



On the same day that Xstrata received Foreign Investment Review Board approval to buy the Cloncurry project, Exco shareholders voted overwhelmingly in favour of the deal.

Exco managing director Michael Anderson thanked the small crowd for coming out to "rubber stamp" the deal, while chairman Barry Sullivan's closing remark that he had "a lot of pleasure in declaring this motion carried" drew laughter.

Mr Anderson said after the meeting that he expected Xstrata's cash to be in Exco's bank account within weeks.

Of the proceeds, $135 million will be returned to shareholders, including the Australian arm of Robert Friedland's Ivanhoe Mines, by the end of October.

The balance will fund work at Exco's remaining projects, in particular the Hazel Creek base metals prospect it believes could be similar to Cloncurry.

Xstrata wants Cloncurry because of its proximity to its mine and as an additional source of material for its Ernest project.

Exco shares last traded at 64.5c.


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