http://news.smh.com.au/territory-slams-olympias-performance/20080...

http://news.smh.com.au/territory-slams-olympias-performance/20080403-23d2.html

Territory slams Olympia's performance
April 3, 2008 - 6:13PM


Iron ore producer Territory Resources Ltd has hit out at an independent valuation of mineral sands explorer Olympia Resources Ltd, its takeover target in an unconditional $12 million bid.

Territory - which launched a 10 cents per share offer for Olympia on March 11 - also slammed Olympia for failing to bring projects into production for the past four years.

Territory chairman Michael Kiernan flagged his intention to acquire Olympia and fellow mineral sands miner Matilda Minerals Ltd in December, with a goal of ultimately building up Territory to produce about 250,000 tonnes of mineral sands concentrate.

"Since listing, Olympia have failed to bring one significant project into production, and proposed timetables for production have been stretched from 2005, as suggested in their June 2004 prospectus, to 2009 in their recent target's statement," Mr Kiernan said in a statement Thursday.

While independent expert BDO valued Olympia shares at 21 cents to 25 cents each, Mr Kiernan said BDO seemed to accept the timing assumptions in cash flow forecasts prepared by Olympia management.

"We believe the independent expert has not questioned their ability to achieve these forecasts, has not considered the effect that further delays would have on value, and has not questioned Olympia's ability to raise future capital, marketing and prices assumptions," he said.

Territory said Olympia had underperformed and its share price had "suffered badly", sliding from 21 cents in February to a "near all time low" of 6.5 cents the day before the takeover bid was launched in March.

Territory held a 19.7 per cent stake in Olympia when it launched the takeover and has amassed a 40.19 per cent interest since the bid was announced in early March.

By last Thursday, Territory had amassed a 29.59 per cent stake in Matilda.

In December, Mr Kiernan told AAP his acquisition strategy was "slowly slowly, creepy creepy, catchy monkey".

He sat on many boards last year and latterly resolved to focus on Territory and Monarch Gold Mining Company Ltd, which operates the Daveyhurst mine in Western Australia.

Territory's offer for Olympia is scheduled to close on April 26.