05/10/2007 - 14:04

Great Australian fully acquires platinum projects for $4.9m

05/10/2007 - 14:04

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Belmont-based gold and base metals explorer Great Australian Resources Ltd will acquire the remaining 50 per cent stake of Platinum Mining Ventures Ltd for a scrip issue of 17.5 million shares, worth around $4.9 million.

Great Australian fully acquires platinum projects for $4.9m

Belmont-based gold and base metals explorer Great Australian Resources Ltd will acquire the remaining 50 per cent stake of Platinum Mining Ventures Ltd for a scrip issue of 17.5 million shares, worth around $4.9 million.

The move to 100 per cent will give Great Australian full ownership of the Mooiplats project and two additional grassroots exploration projects.

 

 

The full text of a company announcement is pasted below

Great Australian Resources Ltd (GAU) has today announced the consolidation of its strategic platinum projects in South Africa after reaching agreement to buy the outstanding 50 per cent shareholding in Platinum Mining Ventures Ltd.

The deal comes after last month's $4 million purchase by Sylvania Resources Ltd, a successful Australian listed platinum producer which holds mining and development projects near GAU's tenements, of a cornerstone 19.9 per cent interest in GAU.

GAU's Managing Director, Mr Joe Cornelius, said "that by concentrating on its South African projects, raising cash and reaching agreement with Sylvania, the company could now maximise its position in the world's most important platinum mining region at a time when the metal was trading at record levels above US$1,300 per ounce."

"We are now strongly positioned to exploit our asset position in the important eastern limb of the platinum-rich Bushveld Complex," Mr Cornelius said. "Sylvania was attracted to us because of the near surface potential of the Mooiplats project, which we have recently been testing with a drilling program that targets the Merensky Reef."

Aside from giving GAU full ownership of Mooiplats, the move to ownership of 100 per cent of Platinum Mining Ventures also brings two additional grassroots exploration projects.

GAU will buy the outstanding interest in Platinum Mining Ventures from Africa Pacific Capital in exchange for approximately 17.5 million GAU shares.

The board of GAU believes that the purchase price is fair and reasonable. The proposed transaction has also been reviewed by independent corporate consultants, RSM Bird Cameron Partners, which has advised that in their opinion, the sales offer is a fair market value and makes corporate sense for GAU to consolidate its platinum holdings.

The deal will be subject to shareholders approval. The company will shortly advise shareholders of the date of the shareholders meeting.

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