12/03/2013 - 15:45

Kiernan’s backdoor listing plan unveiled

12/03/2013 - 15:45

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Kiernan’s backdoor listing plan unveiled

 

South Perth company Gulf Mines has announced plans to acquire an interest in an Indonesian manganese project developed by Western Australian mining veteran Michael Kiernan.

The deal will result in Mt Kiernan’s family becoming a major shareholder in Gulf, and his son James joining the Gulf board.

The planned transaction involves Gulf acquiring a 19.5 per cent shareholding in Asia Minerals Corporation, an unlisted Australian public company.

AMC, through its 90 per cent-owned subsidiary PT Asia Mangan Group, is developing a manganese trading and exporting operation in West Timor.

The shares are to be purchased from Leprechaun Holdings, a company controlled by James Kiernan.

The purchase will be satisfied by the issue of 335 million shares and 665 million three-year options with a strike price of 0.75 cents.

By comparison, Gulf’s share price has ranged between 0.3 cents and 0.8 cents this year.

Upon completion, Gulf chairman Peter Remta plans to join the AMC board.

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

Mr 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.

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