aqp bid for uk junior producer ridge mining

this can not do other juniors any harm at all:

http://www.advfn.com/p.php?pid=nmona&cb=1234454392&article=36226407&symbol=L%5ERDG

RNS Number : 2426N
Ridge Mining PLC
12 February 2009

Ridge Mining PLC
12 February 2009
Ridge Mining PLC ('Ridge' or the 'Company') (AIM: RDG)

Ridge confirms it is currently in discussions with Aquarius Platinum Limited
("Aquarius") which may or may not lead to an offer for Ridge's entire issued and
to be issued share capital.


There is no certainty as to the terms and structure of any such transaction nor
that an agreement will be reached between the Company and Aquarius.
Shareholders are advised to take no action at this time. Any further
announcement will be made as appropriate.

also:

http://www.miningmx.com/platinum/aquarius-platinum-goes-for-ridge-mining.htm

Aquarius to buy Ridge Mining
Brendan Ryan
Posted: Thu, 12 Feb 2009
[miningmx.com] -- AQUARIUS Platinum (Aquarius) is in negotiations to take over junior platinum company Ridge Mining and the deal could be sealed as soon as next week.
That’s according to an informed market source who added the deal would be an all-equity offer by Aquarius.
Both companies are listed on the London Stock Exchange which would make an equity offer by Aquarius attractive to Ridge’s shareholders. Aquarius is also listed on the ASX and the JSE.
Aquarius CEO Stuart Murray declined to comment. Ridge CEO Terence Wilkinson commented that a statement would be released later today that Ridge was in discussions with Aquarius that may or may not lead to a deal between the two.
Wilkinson is currently in South Africa. He had set up a series of media interviews to take place during the Mining Indaba conference in Cape Town but cancelled them all immediately prior to the start of the conference.
If the deal goes through it will be another milestone in the consolidation of the South African platinum sector and a major development for Aquarius which has been involved in a string of such negotiations but never pulled off a deal on this scale.
Market speculation has previously linked Aquarius to negotiations with Eastern Platinum as well as Mvelaphanda Resources and Northam Platinum over access to their Booysendal project which sits adjacent Aquarius’ Everest South mine.
During Xstrata’s unsuccessful play for Lonmin there was even speculation that Aquarius might team up with Impala Platinum to launch a counter-bid.
Reason for the constant speculation is that Aquarius has a strategic need to merge with or take over other platinum operations which will give it a long-term future.
While Aquarius has been by far the most successful of the new entrants into the platinum sector its existing mines have short, remaining economic lives.
Ridge offers Aquarius an immediate increase in its total platinum production because it is in the process of commissioning its first mine called Blue Ridge.
But Ridge also offers Aquarius the opportunity for major future expansion through its second project which is Sheba’s Ridge - an extensive base metal and platinum deposit located near Groblersdal.
Blue Ridge is also situated near Groblersdal on the eastern limb of the Bushveld Complex which hosts the main platinum bearing reefs.
The mine consists of two decline shafts which at full capacity will mine 120,000t/month of ore over a projected economic life of 18 years during which it will produce at a rate of 150,000oz/year of platinum group metals (pgm).
Commissioning of the concentrator at Blue Ridge started on January 12 this year. The first ore is expected to be processed in mid-February and the first concentrate produced around the end of the month.
A stockpile of 250,000t of ore has already been built up on surface ready for processing once the plant has been fully commissioned.

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So far only a prefeasibility study has been carried out on Sheba’s Ridge which would be a far larger operation should it get the go-ahead.
The Sheba’s Ridge deposit is estimated to contain 1.4 million tonnes (mt) of nickel, 19m oz of pgm and 0.5mt of copper.
The 2007 study estimated that a mine could be developed at a cost of US$690m that would produce 12,000t/year copper; 24,000t/year nickel and 390,000oz/year of pgm.
The mine would have a life of 18 years and it would be predominantly a base metal producer with the key statistic being the estimate that it could produce nickel at an operating cost of $1.30/lb.
Wilkinson has spoken previously about a development strategy for Sheba’s Ridge which would include the construction of a smelter that could handle the mine’s production but also have the capacity to toll-treat concentrates from other junior platinum producers in the region.
That would provide the juniors with an alternative to having their concentrates processed by the existing “big three” platinum producers - Impala Platinum, Lonmin and Anglo Platinum.
It would also offer Ridge the possibility to expand its business through further consolidation within the platinum sector.
The Ridge share price peaked at 150p in July 2007 from where it has dropped to current levels around 32p.
Aquarius shares dropped below 100p in December last year but have since recovered to current levels around 184p.
The writer owns shares in both Aquarius Platinum and Ridge Mining.