Plutonic rules out lifting Coolawin offer

PLUTONIC Resources has decided against increasing its $18 million bid for Coolawin Resources, its 20 per cent partner in the Mount Morgans gold mine in Western Australia. The 60-cents-a-share offer is set to close on Wednesday without Plutonic having acquired any shares to add to its existing 19.9 per cent stake. Plutonic’s intital stake was acquired from interests associated with four Coolawin directors. But since the bid was announced in late December, more than 19 per cent of Coolawin has changed hands at prices above the Plutonic offer. The main buyer has been stockbroker Rene Rivkin, who has reported a 12.2 per cent Coolawin stake. It has been reported that an independent report commissioned by Mr Rivkin has valued Coolawin at between 70 cents and 95 cents a share, assuming a $US400-an-ounce gold price. Coolawin said yesterday it was not aware of Mr Rivkin’s intentions. It also said its shareholding structure “may change significantly” before the conclusion of the Plutonic offer. Coolawin shares fell two cents to 61 cents a share yesterday. More than 600,000 shares changed hands. The managing director of Plutonic, Ron Hawkes, said his company still believed the 60-cents-a-share bid was fair value.