Found this article about IGS
By JAMIE FREED
NKWE Platinum is poised to launch a long-awaited takeover bid for the rival platinum explorer International Goldfields as early as Monday.
International Goldfields's executive chairman, Tony Sage, told the Herald the all-cash offer was expected to value the target between $55.6 million and $68 million, or between 45c and 55c a share, in line with an independent expert valuation presented to Nkwe by BDO Kendalls last week. International Goldfields entered a trading halt yesterday morning after its shares rose 2.5c to 33c on high volume amid market speculation that Nkwe was about to make a 50c a share bid for the company after months of negotiations that had progressed more slowly than expected due to the plunging platinum price.
"We thought it would be prudent [to halt trading] given it is very close to finalising a transaction," Mr Sage said.
International Goldfields has the right to earn a 15 per cent stake in three projects in South Africa's platinum-rich Bushveld.
Nkwe and its black empowerment partner, Genorah Resources, own the remainder of those projects and some neighbouring ground.
In August Nkwe and Genorah sold Xstrata a $US10 million ($14.2 million) option to acquire 50 per cent stake of their holdings in five properties in the Bushveld's Eastern Limb that contain a targeted 100 million ounces of platinum group metals.
If Xstrata exercises the option, a decision to be made after a feasibility study is completed at the end of the year, the company will be responsible for 100 per cent of the development costs of the $US1 billion project.
Under an option agreement with International Goldfields, Nkwe holds exclusive negotiation rights until February 7.
Mr Sage said Nkwe was expected to sell a royalty stream to finance the all-cash deal without resorting to issuing more equity or debt.
"Given the level of negotiation that has gone on in the last three or four months, they don't want to lose the opportunity. They are very keen to do a deal quickly. We think we can finalise the deal in the next two or three days."
Mr Sage said other companies, including Xstrata, Anglo American and Pallinghurst Resources, were also likely to be interested in International Goldfields if the Nkwe takeover was unsuccessful.
"Everyone knows this is the last area where there is a massive amount of platinum," he said. "We are sitting on a very strategic stake."
----------
Dated January 3 2009
Who would have thought!!!
Expand
