Looks like some big shareholders selling !!!!Territory’s bid...

Looks like some big shareholders selling !!!!

Territory’s bid ‘opportunistic’: Olympia

Colin Jacoby
Thursday, 27 March 2008

PERTH-based Olympia Resources has today rejected Michael Kiernan-led Territory Resources’ cash bid of A10c per share, saying the offer was opportunistic and did not reflect the company’s value.



In its target’s statement, the mineral sands explorer said independent expert, BDO, concluded that Territory’s offer – which valued the company at around $A15.5 million – was neither fair nor reasonable.

BDO assessed the preferred value of Olympia shares to be in the range of 21-25c, a 110-150% increase on the price offered by Territory.

Olympia’s main projects include the Keysbrook mineral sands project in Western Australia, the Hart’s Range garnet project in the Northern Territory, and a mineral sands joint venture in Indonesia.

“We are of the view that the Territory offer is opportunistic in that the value of your company should improve to meet the value ascribed by BDO as each project delivers its promise,” the company said in its target statement.

“We recommend that shareholders retain their equity in the company with the intention of participating in capital growth over the next two years.”

However, Territory Resources chairman Michael Kiernan told MiningNews.net that Olympia directors have some serious questions to answer to their shareholders.

“If the company is, as they say, valued at 21c to 25c the first thing is how then have [the directors] let the shares drift down to 6c or 7c,” he said.

“They now have a valuation but they have allowed their company to drift to be a quarter of their valuation.”

“So if I was a shareholder, I would say to them you have been forced into a position to get a valuation, how come you didn’t know the value of your own company.”

Kiernan also questioned the company’s development of its Keysbrook project in Western Australia.

“The company listed five to six years ago on developing the Keysbrook project and the project is nowhere near development,” he said.

Territory, which is conducting the takeover via wholly-owned subsidiary Territory Mineral Sands, owns a 36.4% share in Olympia.

Its bid marked another foray for Kiernan into mineral sands, alongside Matilda Minerals.

Shares in Olympia were trading at 10c prior to entering into a trading halt, while Territory was trading unchanged at 94.5c.