04/12/2013 - 11:37

Brighton bids $28m for Kiernan company

04/12/2013 - 11:37

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South Perth company Brighton Mining Group has announced plans to acquire Indonesian manganese miner Asia Minerals Corporation, which is led by Perth mining entrepreneur Michael Kiernan and counts another South Perth company, Gulf Mines, as a substantial shareholder.

Brighton bids $28m for Kiernan company

South Perth company Brighton Mining Group has announced plans to acquire Indonesian manganese miner Asia Minerals Corporation, which is led by Perth mining entrepreneur Michael Kiernan and counts another South Perth company, Gulf Mines, as a substantial shareholder.

Brighton plans to offer 23 shares for each share in AMC and one share for every 10 AMC options, valuing the bid at $28.8 million.

Managing director Jonathan Remta said AMC’s manganese project would provide short-term positive cash flow to Brighton, which had cash reserves of just $457,000 at the end of September.

AMC’s major shareholders include Gulf Mines, which acquired a 19.5 per cent stake earlier this year; it is chaired by Peter Remta and works from the same Lyall Street, South Perth, address as Brighton.

However, Brighton said today that "AMC has 83 shareholders, none of whom has a controlling interest, nor would any of the shareholders be regarded as associated or related parties of the company."

When contacted by Business News, Mr Peter Remta would not directly comment on any relationship.

AMC president Michael Kiernan made his name as chief executive of listed manganese miner Consolidated Minerals.

ConsMin’s commercial success made it a hotly contested takeover target, with Ukrainian billionaire Gennadiy Bogolyubov winning control of the company in 2007 through a $1.1 billion offer.

After leaving ConsMin, Mr Kiernan pursued a variety of ventures through Territory Resources, Swan Gold Mining, and Matilda Zircon, but has spent the past two years focused on AMC.

Lawyer Tom Bannerman, Iron Ore Holdings director Mal Randall, and accountant Kevin Somes are currently on AMC’s board.

The unlisted company currently holds a 1,300-hectare mining tenement and processing plant, with capacity to produce up to 240,000 metric tonnes per annum of manganese lump ore for domestic and export markets.

Additionally, AMC recently secured port land for shipping stockpiles and industrial land for a future downstream processing plant.

Brighton believes the risks of the manganese project have been markedly reduced since it started production with the availability of a full export license.

Separately, Brighton plans a second takeover bid for unlisted company Brighton Mining Limited, valued at $1.5 million on a one-for-one share basis.

Jonathan Remta is also a director and shareholder of BML and a director of Cambodia-based Summer Gold, in which BML has a 70 per cent stake.

The company has funded the development and exploration of Summer Gold’s two gold projects since 2007.

Shares in Brighton are unmoved, trading at 1 cent, as of 11am, WST.

 

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