Monarch Resources Ltd has lifted its stake in Siberia Mining Ltd to 90.1 per cent of shares under its takeover offer announced in November.
Monarch, through acquiring in excess of 90 per cent of Siberia shares, intends to proceed to compulsorily acquire the remaining Siberia shares on issue, paving the way for the merger of the two companies and the resulting de-listing of Siberia.
Monarch also currently holds acceptances for 89% of Siberia's listed options (exercisable at 20 cents per option) and 100 per cent of Siberia's unlisted options (exercisable at 5 cents per option).
The takeover offers for both the ordinary shares and the listed options remain open for acceptance by share and option holders until 5.00 pm (WST) on 24 January 2006, subject to any further extensions.
Monarch's chairman Michael Kiernan said he was very pleased with the positive response from Siberia
shareholders and option holders.
The merger will consolidate ownership of the gold exploration and development assets assembled by Monarch and Siberia in the Davyhurst, Siberia and Lady Ida gold belts north-west of Kalgoorlie.
Following completion of the offer, Monarch will have a combined resource base of over 2 million ounces, a centrally located gold treatment facility and an extensive regional exploration portfolio.
The strategic objective of the company is to commence intensive regional exploration as soon as possible targeting 3-5 years of mineable gold reserves prior to starting production.