Andean rebuts Kingsgate advances

THE takeover saga between Perth-headquartered gold explorer Andean Resources Ltd and suitor Kingsgate Consolidated Ltd has taken another turn with Kingsgate declaring its takeover bid unconditional. Andean Resources chairman Warren Gilmour said: “This is status quo as far as we are concerned, Kingsgate have done nothing to outline further details of the significant risks involved in its Chatree Project, and why only one of ten mining leases applied for have been granted.” Andean’s principal asset is the Cerro Negro exploration project in Argentina. Gold miner Kingsgate launched its $105 million takeover play for Andean on February 22 this year, offering one share for every 15 Andean shares, valuing Andean shares at 39.1 cents. Andean has always been opposed to the advances of Kingsgate, arguing primarily that the offer undervalued the company. Kingsgate believes the offer gives Andean shareholders the opportunity to realise a premium for their shares. It believes Andean’s share price was being supported by the Kingsgate bid. Kingsgate chairman Ross Smyth-Kirk said there was every chance the share price would fall if the bid, which expires on April 21, was not accepted.