CBH recommends revised Toho proposal

CBH Resources Ltd's independent board committee has recommended Toho Zinc Co's bid for a stake in 49.9 per cent of the miner.

"The independent Committee has endorsed the revised Toho proposal and recommends it to CBH shareholders, subject to no superior proposal emerging," Sydney-based CBH said in a statement on Thursday.

The committee said it wasn't recommending the proposal from Belgian zinc giant Nyrstar NV because it couldn't be successful in the current form.

CBH said it anticipated despatching a revised notice of meeting by the end of March and holding a shareholders meeting in late April.

Toho, a Japanese zinc products maker, already is a 24.1 per cent shareholder in CBH and holds a 50.6 per cent interest in the miner's convertible notes.

Under the deal unveiled on Tuesday, Toho made a proportional takeover offer to CBH shareholders at 25 cents per share, with the aim of gaining a maximum interest in CBH of 49.9 per cent.

CBH would sell half of its Rasp project at Broken Hill in NSW to Toho for $57.5 million.

Toho would buy all of CBH's share in lead and zinc concentrates produced at Rasp.

Following completion of those transactions, CBH would make an offer of $500 in cash and 1,800 of its shares per convertible note for all of its outstanding convertible notes.

CBH said the offer by Nyrstar was conditional on buying all of the miner's convertible notes, half of which are owned by Toho, which said it would not support Nyrstar's proposal.

That would lead to the failure of Nyrstar's proposed scheme of arrangement.