Western Australian minerals explorers Gondwana Resources Ltd and Polaris Metals NL have agreed to merge their Southern Cross and Parker Range area gold prospects.
Western Australian minerals explorers Gondwana Resources Ltd and Polaris Metals NL have agreed to merge their Southern Cross and Parker Range area gold prospects.
The merger of the WA goldfields located prospects will be effected through the sale of interests to a new company, called Regatta Resources Ltd.
The agreement between Gondwana and Polaris will be conditional on the successful float of Regatta, and it is proposed that Regatta will raise $3 million by the issue of 15 million new shares to the shareholders of Gondwana and Polaris, and the general public.
The companies are also negotiating the acquisition of the Parker Range prospects of two other explorers in the region.
Gondwana and Polaris each hold substantial interest in the area and have
recognised the synergy offered by the proximity of their respective tenement interests.
Both parties believe that combining the tenements into one package will enhance their value, with Regatta holding one of the largest tenement packages in the Parker Range region.
The region is highly prospective for gold, nickel and other minerals.
Importantly, the potential for establishing gold production at an early date will be significantly increased by the merger of projects into one company.
THE FULL MEDIA RELEASE APPEARS BELOW.
Merger of Parker Range Tenements
Gondwana Resources Limited ("Gondwana") advises that it has reached agreement, subject to the
execution of a formal agreement, with Polaris Metals NL ("Polaris") for the two companies to merge
their respective gold prospects situated south of Southern Cross and in the Parker Range area.
The merger of prospects will be effected through the sale or assignment of interests to a new
company, Regatta Resources Limited ("Regatta").
Gondwana and Polaris are also negotiating the acquisition of the contiguous Parker Range prospects
of two other Parker Range explorers.
OBJECT OF THE MERGER OF INTERESTS
Gondwana and Polaris each hold interests in substantial areas of the Parker Range and have
recognized the synergy offered by the proximity of their respective tenement interests. Both parties
hold tenements which contain significant gold mineralisation and which require immediate re-
evaluation and resource estimation in the light of the current price of gold, which is at a 25-year high.
The two companies believe that combining the tenements into one package will enhance their value,
with Regatta holding one of the largest tenement packages in the Parker Range region. The region is
highly prospective for gold, nickel and other minerals.
Importantly, the potential for establishing gold production at an early date will be significantly
increased by the merger of projects into one company.
The parties consider that combining their tenements in Regatta, issuing a prospectus to raise the
necessary capital, and obtaining ASX listing will more rapidly advance the gold prospects. Regatta, as
a dedicated and focused company, will fast-track the exploration, evaluation and development of the
prospects.
CONDITIONS
The agreement between Gondwana and Polaris will be conditional on the successful float of Regatta.
Gondwana's participation will also be conditional, inter alia, on the consent of St Barbara Limited
under the original Sons of Gwalia Exploration Alliance Agreement, pre-emptive rights held by certain
joint venture partners and any shareholder and regulatory approval that may be necessary.
CONSIDERATION PAYABLE BY REGATTA
The consideration payable will be as follows:
Gondwana 7 million fully paid shares in Regatta at a price of 20 cents each;
Polaris 5.5 million fully paid shares in Regatta at a price of 20 cents each;
and a royalty will be payable to each vendor in the event of commercial mining operations on the
tenements.
It is proposed that Regatta will raise $3,000,000 by the issue of 15 million new shares to the
shareholders of Gondwana and Polaris and the general public.
MANAGEMENT
Regatta's exploration and development will be managed by a highly experienced team headed by Bob
Annett and Paul Maher.
Bob Annett is a highly experienced, successful gold and base metals geologist. Bob has been
involved in mineral exploration and mining for over 25 years since graduating from the Royal School of
Mines, London, in 1978. He has held senior management positions in mining and exploration
companies and has explored for gold, base metals, coal and industrial minerals throughout Australia,
South East Asia, North Africa and South America.
Paul Maher has held senior exploration positions in several gold orientated exploration and mining
companies in WA since graduating from Curtin University in 1983. Paul has had considerable
experience in gold exploration throughout the Yilgarn and Pilbara regions of WA, in particular almost 3
years as Senior Exploration Geologist with Sons of Gwalia in the late 90's.
During that time, Paul's Marvel Loch team of 3 geologists delineated significantly increased gold
resources and made discoveries including the Cornishman (JV with Troy Resources) and the Jaccolitti
deposit. Following the take-over of Yilgarn Star, the Sons of Gwalia exploration department grew to
approximately 20 people and Paul was principally in charge of the Southern Cross to Marvel Loch
area.
The management team will be supported by a board which will include Vern Strange, Kevin Schultz
and Warren Beckwith.
GONDWANA'S MADAGASCAR INTERESTS
Whilst Gondwana will continue to participate in and strongly support the establishment and success of
Regatta, this agreement will allow Gondwana's management to concentrate principally (subject to
shareholders approval at the annual general meeting on 31 May 2006) on Gondwana's new interests -
the Madagascar exploration projects.
For further information, please contact Warren Beckwith on phone (08) 9388 9697 or 0419 838 839 or
by email at wbeckwith@gondwanaresources.com