IGO ‘selling out’ of New Century Resources

IGO paid 15c a share for 180m shares in New Century shares in June. Picture: Mike Hosken

WA nickel miner IGO appears to be selling out of New Century Resources only months after emerging as the zinc and nickel play’s biggest shareholder.

Stockbroker Euroz was offering a block of 180m shares of New Century stock at a floor of 15.5c a share on Monday night, well below the company’s last traded price of 19c a share.

IGO paid 15c a share for 180m shares in New Century shares in June, just before the Queensland zinc producer went public with its bid to acquire Vale’s troubled Goro nickel mine in New Caledonia.

New Century is still locked in negotiations with Vale over the precise terms of the deal, but the Brazilian mining major has indicated it is prepared to kick in about $US500m to smooth the path to offloading the loss-making operation.

IGO’s sellout of New Century is only the latest in a long line of withdrawn corporate plays for the nickel miner, which also owns a 30 per cent stake in the Tropicana gold mine in WA.

Last year IGO took a stake in fellow WA nickel miner Panoramic before launching - then withdrawing - a hostile $312m takeover tilt.

In June it spent $13m topping up its stake in another WA nickel play, Mincor Resources, in its $60m raising.

It has previously also taken a stake in Gold Road Resources before selling out at a profit.

New Century closed Monday at 19c, with IGO finishing the day down 2c to $4.43.