05/06/2008 - 14:36

Opes Prime saga ends for Fairstar

05/06/2008 - 14:36

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Osborne Park-based Fairstar Resources Ltd can now concentrate on its takeover of neighbour Golden West Resources Ltd, after the sale of shares held by ANZ Bank in the wake of the Opes Prime disaster.

Osborne Park-based Fairstar Resources Ltd can now concentrate on its takeover of neighbour Golden West Resources Ltd, after the sale of shares held by ANZ Bank in the wake of the Opes Prime disaster.

Fairstar now has an additional 250 new shareholders on its registry following the completed sale of 38.1 million shares, representing around 12.4 per cent of the company, to new and existing shareholders.

"The completion of the sale of the shares has removed the overhang on the market and the uncertainty surrounding the status of the parcel," Fairstar said.

In April the company disclosed its position in the Opes Prime saga after it was revealed that iron ore miner Portman Ltd had acquired a 10 per cent stake in takeover target Golden West, after purchasing it on market through ANZ's sale of Opes shares.

Fairstar previously said that the 10 million shares it was entitled to in its takeover bid for Golden West were now held by ANZ Nominees Ltd pursuant to an arrangement with Opes Prime.

The company had pledged the shares to ANZ Nominees on behalf of Opes Prime, as security to a $3.3 million loan. The loan was to assist with working capital, fund exploration and to participate in Golden West's pro-rata share issue.

Fairstar is offering seven of its shares for each Golden West share and the takeover is scheduled to close on June 11.

Prior to the stockbrokers collapse, Fairstar held 36.6 million shares in Golden West, representing around 33.2 per cent of its issued capital.

At the end of April held around 24 per cent of Golden West shares.

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