MELBOURNE Nov 29 Iluka Resources Ltd
said on Tuesday it may call off a planned 215 million-pound
($267 million) takeover of Sierra Rutile Ltd after
raising concerns about its mine tailings dams.
Iluka said it had notified Sierra Rutile that a "material
adverse change condition" of their merger agreement had been
triggered "due to geotechnical risks of SRL's tailings dams" and
was in discussions to extend the Wednesday deadline for the
If the companies fail to agree to extend the deadline within
five business days after Wednesday, then either side may
terminate the merger agreement, Iluka said in a statement to the
Australian stock exchange.
Iluka wanted to take over Sierra Rutile to double its
resource base of rutile, which is used to make white pigment and
titanium metal. Sierra Rutile owns one of the world's largest
deposits of the premium mineral, in Sierra Leone.
($1 = 0.8056 pounds)
(Reporting by Sonali Paul; Editing by Jonathan Oatis)