Vector Resources says it will make an off-market takeover bid for an unlisted public company, Golden Iron Resources, and plans further deals to increase its gold-prospective landholdings.
Vector Resources says it will make an off-market takeover bid for an unlisted public company, Golden Iron Resources, and plans further deals to increase its gold-prospective landholdings.
Golden Iron Resources has rights to six gold projects and one iron ore project near Southern Cross.
"Vector is intending to make a takeover offer for all Golden Iron shares on the basis of one fully paid ordinary Vector share for every two Golden Iron shares held," the company said in a statement to the Australian Securities Exchange.
"Golden Iron shareholders will hold approximately 25 per cent of the expanded issued capital of Vector immediately on completion of the acquisition of 100 per cent of the Golden Iron shares on issue."
"The bid for Golden Iron Resources Limited will, in our view, create a company with a suite of near term production gold assets that has the required funding to undertake an aggressive exploration and resource definition drilling program with the aim of production to commence as soon as possible to benefit from the current record high gold prices," said Vector Resources chairman Gary Castledine.
"This transaction represents an exciting opportunity for Golden Iron and its shareholders to be part of a quality ASX listed company, with the balance sheet strength to enable an aggressive exploration and development of the highly prospective assets that will achieve shareholder value," said Golden Iron Resources managing director Michael Wolley.
Golden Iron's board has expressed its full support for the bid.
The company's board informed Vector that the Golden Iron directors intend to unanimously recommend to Golden Iron shareholders that, in the absence of a superior proposal, they accept Vector's offer.
See company statement below:
Vector Resources Limited (ASX: VEC) ("Vector" or "the Company"), a Western
Australian focussed gold and iron company, is pleased to announced its intention to
make an off-market bid for 100% of the issued capital of Golden Iron Resources
Limited ("Golden Iron"), an unlisted public company with a total of 47,025,000 shares
on issue.
Vector is intending to make a takeover offer for all Golden Iron shares on the basis
of one (1) fully paid ordinary Vector share for every two (2) Golden Iron shares held.
Golden Iron shareholders will hold approximately 25% of the expanded issued capital
of Vector immediately on completion of the acquisition of 100% of the Golden Iron
shares on issue.
Golden Iron has the rights to a highly prospective portfolio of six gold projects and
one iron ore project located within the established gold province of Southern Cross in
Western Australia, with its lead project, Mt Dimer, hosting a high-grade JORC
Compliant Resource of 798,900t @ 4.7g/t for 118,800 oz Au.
Significant unmined intercepts within the Mt Dimer Project include1:
- 4m @ 11.49 g/t Au
- 6m @ 13.78 g/t Au
- 4m @ 19.90 g/t Au
- 2m @ 59.20 g/t Au
- 2m @ 71.80 g/t Au
- 1m @ 252.54 g/t Au
Mt Dimer has previously produced 133,000 oz Au @ 6.5g/t and 183,000 oz Ag. At Golden Iron's Gwendolyn Project a JORC compliant inferred resource of 317,700t at 3.3 g/t Au for 33,000 ounces of gold has been defined, however there exists the potential for a significant DSO (direct shippable iron ore) operation, with surface sampling returning grades of2:
- 66.5% Fe
- 64.9% Fe
- 63.9% Fe
- 64.1% Fe
Further details of Golden Iron's projects can be found at its website: www.goldenironresources.com.au
"The bid for Golden Iron Resources Limited will, in our view, create a company with a suite of near term production gold assets that has the required funding to undertake an aggressive exploration and resource definition drilling program with the aim of production to commence as soon as possible to benefit from the current record high gold prices," said Vector Resources Limited Chairman, Mr Gary Castledine.
"This transaction represents an exciting opportunity for Golden Iron and its shareholders to be part of a quality ASX listed company, with the balance sheet strength to enable an aggressive exploration and development of the highly prospective assets that will achieve shareholder value," said Golden Iron Resources Limited Managing Director, Mr Michael Wolley.
Golden Iron's board has expressed its full support for the bid, and has informed Vector that the Golden Iron directors intend to unanimously recommend to Golden Iron shareholders that, in the absence of a superior proposal, they accept Vector's offer. The key management and Board of Golden Iron have indicated their willingness to join Vector in both an executive and technical capacity to assist it in the development of the combined group's assets. Post Merger, it is proposed that from the existing board Gary Castledine and Neville Basset will remain and the new directors and key management of Vector will include:
Michael Wolley
Michael is the current CEO and Managing Director of Golden Iron. Michael has a depth of experience in the resources and industrial sectors in both Australia and internationally.
Michael was previously COO for Lynas Corporation and President of BlueScope Steel China.
He began his career with Mobil Oil Australia and over a 15 year period held senior roles in engineering, production and planning across Australia and New Zealand.
Glyn Povey
Glyn is an experienced senior executive with significant domestic and international experience including roles as a Senior Project Manager in Hong Kong, Director of Operations for a mineral exploration company, and Mine Manager for a number of underground and open cut mines in Australia. Glyn was previously Vice-President Operations for Crosslands Resources Ltd, a joint venture between Murchison Metals Ltd and Mitsubishi Development Pty Ltd.
Brian Williams
Brian is experienced as a mining, engineering and infrastructure executive and director with substantial domestic and international (Asia, Europe and Africa) open pit and underground mine development and management experience, including project managing some of the largest underground and open cut gold mines in Western Australia. Brian has held senior management roles at operational and corporate levels within the resources industry in both private and publicly listed companies.
To augment the Company's funds for exploration and development of the Company's projects, subject to successful completion of the bid for Golden Iron, the Company intends to raise up to $1.4million through the issue of 20 million fully paid ordinary shares with a 1 for 1 attaching listed option (30 June 2012, 20c exercise). The issue of these securities will be subject to the approval of Vector shareholders.
Vector has a clear and focused strategy to aggressively pursue complementary highgrade gold projects and opportunities, and is currently reviewing additional projects within the Goldfields region of Western Australia.
The Company has A$7.35M in cash as at the end of the last quarter.
