AUSTRALIA'S ZINIFEX, OXIANA SET TO MERGE AS EQUALS.

SYDNEY, March 3 Asia Pulse - Miners Zinifex Ltd (ASX:ZFX) and Oxiana Ltd (ASX:OXR) are set to join forces to become the third-largest miner listed on the Australian stock exchange, in what their two chairmen describe as "a true merger of equals".

Zinifex shareholders are to be offered 3.1931 Oxiana shares for each Zinifex share they own, with the combined entity owned 50:50 between the two lots of shareholders.

"We are proposing a true merger of equals and the ratio of 3.1931 Oxiana shares for each Zinifex share reflects this," said Oxiana chairman, Barry Cusack, and Zinifex chairman, Peter Mansell, in a joint statement.

"The merger terms reflect our Boards' mutual judgment that relative market valuations are the appropriate basis to ensure both groups of shareholders receive equivalent value in the proposed merger.

"We took into account the volume-weighted average prices of both companies over the period during which the Boards of Oxiana and Zinifex have been actively considering the proposed merger, due diligence and the prospects of each company," Mr Cusack and Mr Mansell said.

"We believe the proposed merger will create value for both Oxiana and Zinifex shareholders.

"The combined company will have a major presence in both the zinc and copper markets, both of which are strongly leveraged into the rapidly expanding economies of Asia and elsewhere in the developing world.