South32 to buy remaining 83% of Arizona Mining for $1.75b

South32 said it would acquire the remaining 83 per cent of Toronto-listed Arizona Mining for $US1.3 billion ($1.75b) in cash.

The Australian business, which already owns 17 per cent of the zinc, lead and silver miner, said the directors of Arizona Mining would recommend shareholders accept the all-cash $C6.20 ($6.31) a share offer.

The offer implies a total equity value for Arizona Mining, which owns the Hermosa Project zinc, manganese and silver assets, of $US1.6 billion. The bid represents a 50 per cent premium to Arizona's last close of $C4.13.

South32 said it expected to complete the transaction in the September quarter. The deal is subject to shareholder approval.

South32 chief executive Graham Kerr said the company had been an active participant in the Hermosa Project and had a deep understanding of the high-grade resource and surrounding tenement package.