UPDATE 2-Aquarius Platinum to make $90 mln bid for...

UPDATE 2-Aquarius Platinum to make $90 mln bid for Ridge
18/02/2009 7:33:55 PM
* To offer 1 share for 2.75 Ridge shares

* Values Ridge at 30 pct premium to Tuesday's close

* Ridge shares up 70 pct since talks announced

(Adds more details, background)

By Eric Onstad

LONDON, Feb 18 (Reuters) - Aquarius Platinum Ltd plans to make an all-share bid for Ridge Mining Plc valuing the firm at 63.9 million pounds ($90.37 million) to expand its resource base and output.

Aquarius, which said on Feb. 13 it was in talks to buy Ridge, said on Wednesday it would offer one of its shares for 2.75 Ridge shares.

That values each Ridge share at 69.5 pence, a 30 percent premium to Tuesday's closing prices. The ratio was based on the relative net asset values of the two firms, Aquarius said.

Ridge shares have soared 70 percent since the two firms said they were in takeover discussions.

Aquarius, which has most of its operations in South Africa, said any firm offer would be conditional on a recommendation from the board of Ridge, which has two major projects in the same country, the world's biggest source of platinum.

"Ridge will further diversify our portfolio, increase our resource base, add new production ounces and longevity to our production profile, and add significant optionality with the Sheba's Ridge exploration property," Aquarius Chief Executive Stuart Murray said.

Ridge's 50 percent owned Blue Ridge mine is expected to launch production next month and produce around 75,000 ounces of platinum group metals (PGMs) this year, ramping up to steady state production of 125,000 PGM ounces by 2011.

"The proposed combination offers Ridge shareholders the opportunity to retain the upside potential contained within our projects whilst reducing the risk inherent in a single early stage operation in a difficult economic environment," Ridge Chief Executive Terence Wilkinson said.

Aquarius said the takeover would boost its proven and probable reserves by 61 percent to 14 million PGM ounces.

Aquarius reiterated that it was exploring a range of equity and debt financing alternatives to repay its bridge loan. ($1=.7071 Pound) (Editing by Erica Billingham and Raji Menon)

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