Nick Evans, The West AustralianMarch 12, 2013, 6:16 am
Former Consolidated Minerals boss Michael Kiernan will end his self-imposed exile from the Australian share market today, selling his family stake in Indonesian manganese miner Asia Minerals Corporation into listed tiddler Gulf Mines.
Gulf Mines entered a trading halt yesterday ahead of the "proposed acquisition of an interest in a new resource project".
It is understood Mr Kiernan will sell his entire 19 per cent shareholding in Asia Minerals into Gulf Mines, in an all scrip deal believed to be worth about $1.5 million. With Gulf Minerals shares last trading at 0.3�, the former corporate high-flyer is expected to emerge with about 50 per cent of Gulf Mines. The tiddler's market value is $1.24 million.
Mr Kiernan has lived and worked in Indonesia for the past two years, after the collapse of his one-time mining empire in 2010. Asia Minerals is a return to the commodity that made his name, with the company initially planning to export 125,000 tonnes of manganese a year from West Timor.
It plans to step up exports to 270,000tpa before eventually smelting and exporting manganese alloy.
Although Mr Kiernan will remain president of Asia Minerals, it is understood he will not take a board role at Gulf Minerals, with his son James stepping up as a director instead. Gulf Mines executive chairman Peter Remta will join the Asia Minerals board.
Gulf Mines is expected to be the primary listing vehicle for Asia Minerals in Australia.
In a February letter to shareholders, sent after the company won an export licence for its manganese ore, Mr Kiernan said Asia Minerals could also seek a listing on the Singapore exchange. The company's Indonesian subsidiary also plans to list on the local stock market.
In the letter, Mr Kiernan said Asia Minerals expected to ship its first ore this month, with sales agreements in place in China and Eastern Europe. It is buying high-grade manganese ore from local miners before its mining operations ramp up.
Mr Kiernan told WestBusiness last year the company's backers had so far spent about $US4 million developing its project. A WORK IN PROGRESS $4m The amount Asia Minerals backers have spent developing an Indonesian manganese mine
