"Newcrest forms new $1.1bn goldminer with Catalpa, Conquest
CATALPA Resources, Conquest Mining and gold giant Newcrest Mining have agreed to form a $1.1 billion Australian-listed gold company through a merger, asset sale and capital raising that is likely to scuttle St Barbara's $350 million bid for Catalpa.
Catalpa and Conquest will merge and purchase Newcrest?s Mt Rawdon and Cracow goldmines in Australia, in exchange for a 38 per cent stake in the new company.
Shortly after the merger and sale, the new company plans to raise $150m in a pro-rata renounceable entitlement offer to ?suitably capitalise the significantly enlarged merged entity, ensuring financial flexibility for development of the asset portfolio and to fund growth opportunities?.
After the raising and based on recent stock prices, the market value of the company would be more than $1.1bn, the companies said.
The merged company would produce 294,000 ounces of gold in 2010-11 and between 400,000 and 500,000 ounces in 2013.
After St Barbara?s hostile bid was launched last month, Catalpa said it would explore all options available to it."
mmmmm
PRE Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
