South African miner Metorex said that it has received a USD 1.32 billion offer from China's Jinchuan Group, trumping a bid by Brazilian giant Vale SA and lifting its share price.

China's dominant nickel producer Jinchuan added almost 22% to Vale's offer, making ZAR 8.90 per share for a cash bid at current exchange rates of around USD 1.32 billion.

Metorex's share price soared by 8.46% on the news to ZAR 8.72.

Metorex said it had not approved any agreement in relation to the Jinchuan offer. However, the companies said in a joint statement that it already had the firm backing of shareholders representing 8% of Metorex voting rights.

Junchuan said in a separate statement that Metorex had deemed its offer superior.

It had almost come down to the wire as Metorex shareholders were set to vote on the Vale offer later this month.

Metorex is seen as a prized asset for a number of reasons. These include the winner getting exposure to copper and cobalt resources in Zambia and the Democratic Republic of Congo at a time when the outlook for both commodities is bullish. Its assets include the Chibuluma copper mine in Zambia which produces about 16,000 tonnes of copper per year.

South Africa's Standard Bank is the adviser and transaction sponsor for Metorex , while Goldman Sachs International is Jinchuan's adviser on the deal.

(Sourced from Reuters