Meanwhile the zinc miner has flagged future growth opportunities for itself and Jinchuan.

Zinifex had already secured a controlling interest in Allegiance back in March, but with Jinchuan indicating it may retain its Allegiance stake (pending the outcome of the planned Zinifex-Oxiana merger), the zinc miner was concerned about its plans to gain full control of Allegiance.

But with the Zinifex-Oxiana merger now a goer and Jinchuan's decision to offload its stake in Allegiance, Zinifex will own more than 90% of Allegiance.

The development opens the door for Zinifex to compulsorily acquire Allegiance's outstanding shares.

Exactly what it means for the zinc miner's relationship with Jinchuan is unclear but Zinifex chief executive Andrew Michelmore used today's announcement to talk up the future growth opportunities for the two companies.

The Zinifex boss welcomed the Chinese group's decision, telling the market, "We view Jinchuan as a strategic partner particularly given Jinchuan's leading position in China's commodity markets which are growing rapidly"

"We are excited by the potential for expanding the relationship between the companies in relation to other base metal projects."

Michelmore said the merger between Zinifex and Oxiana presented opportunities for the miner to extend its relationship with Jinchuan.

"The merged company will be a substantial producer of copper, nickel and zinc which are all metals that are part of Jinchuan's business," Michelmore said.

"These markets present multiple opportunities to grow together."

With the move toward full control of Allegiance, Zinifex will assume the nickel miner's commitments in relationship to Jinchuan, including those involving ore delivery from Allegiance's Avebury nickel mine and its other Tasmaninan operations.

Zinifex has also committed to the expansion plans at Avebury and said "all of the increased output would be delivered to Jinchuan under the existing supply contract"

Zinifex's offer for Allegiance is scheduled to close next Friday, May 16.

Zinifex shares gained 3c this morning to $10.53 before falling to $10.48.