article sydney morning herald

Miners cash in on boom with new company
Email Print Normal font Large font May 10, 2006 - 7:55PM

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AdvertisementPolaris Metals Nl and Gondwana Resources Ltd plan to merge their gold prospects to form a new company to list on the Australian Stock Exchange.

The new company, Regatta Resources Ltd, will house gold prospects in the Parker Range and Southern Cross regions and will be seeking $3 million in an initial public offering.

Polaris and Gondwana are also in discussions with two other explorers active in the Parker Range, to add their projects to Regatta.

Polaris said Regatta's prospects host significant gold mineralisation which could be developed rapidly into a mine.

"Both parties hold tenements which contain significant gold mineralisation and which require immediate evaluation and resource estimation in the light of the current price of gold," Polaris said.

Gondwana will receive seven million shares in Regatta, priced at 20 cents each, in consideration for its prospects, while Polaris will receive 5.5 million shares at the same price.

Both companies will receive royalties should any mine be developed.

Polaris said spinning off its gold assets will allow it to focus on its iron and uranium exploration.

Gondwana meanwhile said it would concentrate on its exploration projects in Madagascar.

Shares in Gondwana lost 0.6 cents to 6.1 cents on Wednesday while Polaris moved two cents higher to 19 cents.

© 2006 AAP