No wonder the share price went crazy. Hope its not a case of buy the mystery sell the history.
Neil Dowling
October 21, 2009 08:25am A SUBIACO seafood company, flushed by an over-subscribed capital raising, is set to buy into coal and manganese projects in Indonesia.
With the change in its corporate direction, Sam's Seafood Holdings will seek shareholder approval to become Pan Asia Corporation and target production of manganese from its West Timor and Flores projects.
-------------------------------------------------------------------------------- Sign up to the PerthNow Business newsletter --------------------------------------------------------------------------------
Sam's today announced it proposes to buy 100 per cent of Innovation West Pty Ltd that has a 55 per cent stake in the four manganese projects and is negotiating an interest in a coal project in South Kalimantan, Indonesia.
Sam's will loan about $1.8 million to the current manganese operators for plant and machinery that will realise a production target of 200,000 tonnes/year manganese. The funds will also allow further exploration and evaluation of adjoining land.
The loan is to be repaid from the sale of manganese and, when extinguished, Sam's will receive a 55 per cent net profit share of future production.
Company directors believe the proposed acquisition of Innovation West will give it near-term manganese operations, large exploration holdings and strong Indonesian mining partners who will be invited to join the company board.
The coal project is the subject to a drilling program that is scheduled to start next month. Sam's company secretary, Luke Martino, said: ``The completion of the acquisition of Innovation West will transform the company from its historical industrial operations to a rapidly-emerging resource company with very significant growth prospects.
``Shareholders will be asked to approve the completion of these acquisitions at a meeting to be convened..''
Sam's shares closed down almost 4 per cent at 2.5c a share on volume of 20 million.
SSS Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
