re: cabots to buy tant assets?/domum Thanks Miningnews.net, _________________________
Cabot into the soggy mix
Rebecca Keenan
Monday, September 20, 2004 THE tantalum assets of Sons of Gwalia appear more likely to be sold off than refinanced according to a media report, with the major tantalum off-take partner of the troubled miner, Cabot Corp, saying it would be interested in purchasing the assets.
Head of US based Cabot Ken Burnes met with SoG's chief executive John Leevers and administrators Ferrier Hodgson in London last week, reported The Sydney Morning Herald.
Burnes told a briefing of US analysts and fund managers that he thought the tantalum assets would be sold off and that if that was the case then Cabot was in the best position to purchase the Wodgina and Greenbushes mines in Western Australia.
Ferrier has previously said they would attempt to refinance the tantalum operations and sell the gold assets.
One analyst told MiningNews.net that as a customer, Cabot was one of the obvious participants in any asset sale.
The SMH report also said investment bank UBS was reportedly advising WMC Resources, with Gresham Partners helping out Iluka Resources.
Prior to its collapse SoG was having problems negotiating its long term contract with Cabot and had flagged the possibility of arbitration.
Cabot combined with fellow SoG tantalum contact holder HC Stark, a division of the Germany Bayer Group, have 80% market share.
SoG has total liabilities of $862 million and moved into voluntary administration in late August after concerns regarding its ability to deliver into is substantial gold hedging contracts".
SGW Price at posting:
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