re: gold t/o offer ....wooo hooo!!
Yep, $1.50 sounds like a fair price, so 1.25 for the options?
Cambrian poised to snap up rest of AGD
www.theage.com.au
By Barry FitzGerald April 25, 2006 AdvertisementAdvertisement
NEW Victorian gold and antimony producer AGD Mining has gone into a trading halt ahead of an expected bid by London-based Cambrian Mining for the 30 per cent of the $42 million group it does not already own.
The expected scrip bid from Cambrian, headed by former Australian mining journalist John Joseph Byrne, is also expected to lead to Cambrian seeking a listing on the Australian Stock Exchange.
A move on to the ASX would smooth the way for the aggressive Cambrian to play a lead role in the rationalisation and consolidation of the junior mining sector.
AGD's Collins Street head office would not confirm yesterday that the reason for it seeking a trading halt was a likely bid from Cambrian.
But analysts said Cambrian's 70 per cent shareholding made a scrip offer for minorities in the bull market for miners an obvious move.
Unlike the heavily promoted Bendigo and Ballarat gold renaissance stories, AGD's work at reviving gold and antimony production at the old Costerfield project in central Victoria has gone largely unnoticed by the market.
Mining started at Costerfield in the March quarter, with ore from the initial open-cut operation stockpiled for treatment in a plant due for completion in late May.
Costerfield has started with a bang, with first ore grading more than an ounce of gold a tonne and 9.9 per cent antimony.
Total project costs are about $12.5 million. Based on annual production of 21,000 ounces of gold and 5500 tonnes of high-value antimony concentrates, the project could generate impressive returns, although securing longer-term reserves remains an issue.
Apart from Costerfield, AGD holds a portfolio of investments in other base metals and gold companies. Those interests, including stakes in Vulcan Resources and Navigator Resources, were injected into the company by Cambrian in January in return for scrip.
AGD's last sale before its trading halt was at 32c.
That was more than double its level in June, with the market warming to the stock in response to the surging gold price and first production from Costerfield.
AGZ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
