Equinox Minerals Ltd (TSX and ASX: EQN) has initiated compulsory acquisition procedures under the Australian Corporations Act to acquire all remaining shares in Citadel Resource Group Ltd. The company has a relevant interest of 90.59 per cent in Citadel.

Equinox declared its $1.25-billion offer for Citadel unconditional in December, after its interest exceeded 50 per cent.

The miner is offering Citadel shareholders one of its own shares, for every 14.3 Citadel shares held and a A$0.105 cash payment for each share held.

“Citadel shareholders are still able to accept the Equinox offer at any time before its scheduled closing date of 5pm WST on January 17, 2011,” Equinox said.

Citadel shareholders who accept the offer will benefit from receiving their consideration within seven business days.”

Citadel shareholders whose shares are compulsorily acquired will receive their consideration at the end of the compulsory acquisition period, which is expected to take four to six weeks subject to the Corporations Act 2001.

Equinox said a compulsory acquisition notice has been lodged with the Australian Securities and Investments Commission and will be sent to each outstanding Citadel shareholder today, together with a covering letter.

Equinox shares were down 1c to $6.15 at 0854 AWST.