key point...unlikely to be a TKO...but the backing CSM will...

key point...unlikely to be a TKO...but the backing CSM will provide is vital!!!

Consolidated boosts stake in Jabiru
August 1, 2005 - 11:49AM

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Consolidated Minerals Ltd has upped its stake in copper and zinc developer Jabiru Metals Ltd but says it has no plans to launch a takeover bid.

Consolidated took a 5.94 per cent stake in Jabiru in June and announced it had bought another 24.3 million shares from Jabiru's major shareholder, Tanami Gold NL.

The $6.08 million purchase took Consolidated's stake in Jabiru to 19.99 per cent and earned it a seat on the board.

It caps off a push by Consolidated to diversify beyond its carbon steel materials operations, which saw the company acquire junior nickel producer Reliance Mining Ltd in February.

Consolidated's managing director Michael Kiernan said the company had no plans to launch a takeover for Jabiru.

Mr Kiernan said it was part of the Consolidated's strategy to take stakes of this size in junior miners, as it had with Reed Resources (19.8 per cent), Mithril Resources (19.56 per cent) and Titan Resources (19.81 per cent).

"We have no intention of taking over any of these companies," he said.

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Advertisement"What we like to do is get a position where we have a meaningful equity in the company and then use our skills and our financial strength to develop a project."

Consolidated's general manager of technical services Rodney Baxter will now join the Jabiru board as a non-executive director.

Mr Kiernan said Consolidated was keen for there to be further intensive exploration at Jabiru's Jaguar copper, zinc and silver project near Leonora in Western Australia, with a view to increasing the mine life from five to 10 years.

Consolidated would now work to expand its nickel production over the next two years and then focus on growing its copper business, he said.

Mr Kiernan said growth in the future could be through further acquisitions or joint ventures, but there was "nothing on the radar" at this stage.

Jabiru plans to start work at Jaguar this month on a decline mine to access the ore body.

Jaguar is forecast to produce between 8,000 and 10,000 tonnes of copper metal concentrate and between 20,000 and 25,000 of zinc metal concentrate a year.

Tanami executive chairman Denis Waddell said the company would use funds from the sale of its stake in Jabiru to develop its Coyote Gold project in WA.


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