OZ Minerals to get alternative to China deal -paper

SYDNEY, June 4 (Reuters) - Australian miner OZ Minerals Ltd (OZL.AX) will receive a recapitalisation proposal from Royal Bank of Canada (RBC) (RY.TO) and Australia's RFC Group as an alternative to its planned $1.21 billion takeover by China's Minmetals, the Australian Financial Review said on Thursday.

The paper said the plan, involving $1 billion in new equity and convertible bonds and another $200 million in working capital, could be presented to OZ Minerals later on Thursday, a week before the indebted miner's shareholders are due to vote on the Minmetals deal.

The paper did not say where it got its information.

Following the recapitalisation, RBC and RFC, an Australian investment firm, planned a rights issue to enhance OZ Mineral's balance sheet, the paper said.

OZ Minerals, struggling with debt repayments that have pushed it close to receivership, has agreed to sell most of its assets to China's Minmetals in a revised deal after the Australian government blocked a full takeover offer from Minmetals.

OZ Minerals shareholders are due to vote on the Minmetals deal, which is backed by OZ Mineral's board and has received all necessary regulatory approvals, on June 11. (Reporting by Jonathan Standing; Editing by Mark Bendeich)