Into the Kiernan web The West Australian mining identity Michael Kiernan has certainly spun an intricate web between his various companies. The mothership, Territory Iron, this week made an on-market cash bid for mineral sands tiddler Olympia Resources, whose board is yet to decide whether to recommend the 10c a share offer. But Olympia has already received a friendly prop from Territory. In the bidder's statement, Territory disclosed it had provided a $2 million loan facility to cash-strapped Olympia, repayable with interest by June 27. It has already advanced $1 million.
Kiernan certainly has form when it comes to lending money around his empire. Copper miner India Resources recently lent $7 million to struggling goldminer Monarch Gold.
Olympia isn't the only company in Territory's sights at the moment. The iron ore miner yesterday revealed it had raised its stake in Monarch to 8 per cent, having had a recent change of heart to include gold in its investment plans.
TTY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
