Croesus Mining, its major shareholder in millionaire prospector...

Croesus Mining, its major shareholder in millionaire prospector Mark Creasy and emerging gold miner Apex Minerals have pooled their nickel assets to create a new Western Australian nickel float.
Author: Ross Louthean

Posted: Tuesday , 09 Jun 2009
PERTH -

A joint announcement today revealed a blueprint to transform former gold miner Croesus Mining NL (ASX: CRS) into a new nickel company, called Sirius Resources NL which will take up properties held by Mark Creasy - who received the world's largest pay-out to a prospector for his equity in developing gold mines in the 1990s - by Apex Minerals NL (ASX: AXM) and Croesus.

The two listed companies said today Croesus would undertake a capital raising to take over a package of prospects in the nickel sulphide belt in Western Australia's Eastern and Murchison mineral fields.
Croesus got into difficulty last year with its gold mining operations at Norseman - since sold by an administrator - and Creasy, a mining engineer who turned to prospecting, increased his shareholding to make it one of his significant investments in Australian companies.
Croesus' executive director Gary Steinepreis said the company would raise up to $A7 million ($US5.55 M) through a private placement at A85 cents/share to sophisticated investors who are clients of Blackwood Capital. The transaction would be subject to the approval of Croesus shareholders at a meeting to be held in about one month's time.

In consideration for the transfer of its nickel assets, Apex would receive about 67 M Croesus shares and 600 M five-year options with a strike price of A3/share. Apex would also be reimbursed for past costs it has incurred.
Creasy, and the vendor entities controlled by him would receive about 267 M Croesus shares as reimbursement for past exploration costs incurred on the properties and interests to be transferred to Croesus.

On the basis of a $A7 M capital raising, Apex would have a 4% stake in Croesus rising to 27% on a fully diluted basis (assuming the subsequent exercise of the options). Mark Creasy, who currently holds 45% of Croesus, would hold a 29% stake decreasing to 20% on a fully diluted basis.
Steinepreis said Sirius would have access to Apex personnel and management expertise under a Service Agreement and that includes senior geologists who played key roles in some of the high grade nickel discoveries in the region.
Apex has nominated Mark Bennett as managing director and Steve Lowe as non-executive chairman of Croesus. Jeff Foster, an internationally recognised nickel expert, consultant and Associate Professor at the University of Tasmania, would also become a non-executive director.
Apex managing director Mark Ashley said: "Creation of a new nickel and base metals explorer provides Apex shareholders with an opportunity to have an exposure to a fully-funded exploration programme in some of the world's most promising nickel regions while benefiting from the cash flow (from gold mining) generated at Wiluna," he said.

Properties in the pool include 70% nickel rights to properties at Lawlers, 70% of Creasy's Collurabbie, Fraser Range and Youanmi prospects, and Croesus' retained 20% stake in the Polar Bear joint venture, north of Norseman.

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