could tty emulate this result , page-3

Kiernan finds a new venture
Email Print Normal font Large font AdvertisementJamie Freed
July 23, 2008

THE recent collapse of the goldminer Monarch Gold into administration has not deterred the Perth mining identity Michael Kiernan from starting new ventures.

Mr Kiernan - who has resigned this year from the boards of Territory Resources, India Resources, Windimurra Vanadium, Australian Zircon, Mineral Resources and Matilda Minerals - has decided to inject $1 million of capital into the tiny Sydney investment company Alexanders Securities.

Mr Kiernan's unlisted investment vehicle Crawley Investments agreed last week to buy 100 million shares at 1c a share at a time when Alexanders' shares were trading at 2.5c. Crawley will also receive 150 million options with an issue price of 0.01c exerciseable at 10c and 20c each.

The funds will hand Mr Kiernan control of 25 per cent of the shares in the company, which has a market value of $10 million, in what is essentially a recapitalisation. His stake will rise if he exercises the options.

A director of Alexanders, Paul Page, said the company planned to switch its focus to mining if shareholders approved the placement.

He said Alexanders had yet to decide whether Mr Kiernan or a representative would receive a board seat.

The administrators of Monarch are accepting expressions of interest in the collapsed miner's assets. Monarch bought its Davyhurst mine from another collapsed miner, Croesus Mining, which Mr Kiernan had also chaired.

Mr Page said he was aware of Monarch's situation, and the idea Mr Kiernan might want to fold some of the assets into Alexanders had been "at the back of my mind".

But he said Mr Kiernan had not brought up that issue.