25/07/2006 - 22:00

Agincourt makes Newmont move

25/07/2006 - 22:00

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Agincourt makes Newmont move

AGINCOURT Resources Ltd has announced a $100 million placement to acquire Newmont Mining Corporation’s Sumatra-based Martabe gold and silver project, in a deal that will also make the US giant the biggest shareholder in the West Perth company. The company’s placement of 86.96 million shares at an issue price of $1.15 will be settled in two tranches, the first being an issue of 12.7 million shares to commence ASX trade on July 28. The remaining 74.2 million shares is conditional upon shareholder approval, to be sought at a general meeting planned for August 24. Agincourt also plans to place 43.48 million shares with Newmont, giving it about 20 per cent ownership of the business, in exchange for Newmont’s $50 million investment. Denver-based Newmont said in April it had decided to sell the Martabe gold mine because its gold deposits were deemed unprofitable. Newmont bought it in 2002, but the site is still at the exploration stage and has not yet produced gold. Agincourt has also entered into a joint venture with an Indonesian consortium led by the Dharmawangsa Group.

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