m k resigns, page-20

Territory shares up as Kiernan quits
25-June-08 by AAP


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Shares in Territory Resources Ltd rose strongly today after Perth mining mogul Michael Kiernan resigned as chairman.

Territory was 16.67 per cent higher in early trade before settling back to 80 cents, up 11.11 per cent at 1423 AEST.

Mr Kiernan, who was the driving force behind Consolidated Minerals Ltd between 1998 and 2006, stood down also as deputy chairman of copper producer India Resources Ltd and as a director of mineral sands miner Matilda Minerals Ltd.

Mr Kiernan sat on some half a dozen boards last year and has since resigned from all but one to focus his efforts on gold producer Monarch Gold Mining Company Ltd where he is expected to be appointed managing director.

Mr Kiernan today confirmed reports that he clashed with Territory's board when it decided not to throw a $3 million funding lifeline to Monarch, which was teetering on the brink of administration after the recent closure of its loss-making Davyhurst gold mine near Kalgoorlie. That mine is a former Croesus Mining NL asset.

At the end of the March quarter, Monarch only $630,000 cash in the bank.

Monarch's shares have been in a trading halt for the past week while Mr Kiernan works to finalise the purchase of the Mt Magnet operations, including the Hill 50 Gold mine, from South Africa's Harmony Gold Mining.

Monarch last traded at 29.5 cents, down from their 94 cent high a year ago.

Mr Kiernan told AAP that Territory's shares, which reached $1.52 last year after the company commenced exports, had been "belted because of its involvement in Monarch".

"My vision was always to build a broad-based resources group as I did at ConsMin (Consolidated Minerals).

"The strategy was successful there, and there are those that don't share that vision with me: some of the shareholders, some of the institutions," he said.

"...it's now time, with Territory up and running, to focus on Monarch.

"Monarch will appoint me as managing director and the immediate future is to keep Monarch alive and finalise the acquisition of Hill 50.

"That will be a serious company maker for Monarch.

"It's the opportunity of the century. It's been a very prolific, profitable gold mine in the past."

Mr Kiernan said Monarch was "seriously unloved" and on "a rocky road" but vowed to "get it through".

He said his departure from Territory in no way signalled a waning of his bullishness for iron ore.

He said also that Territory's board remained keen to add mineral sands to its mix and retained strategic stakes in Matilda and Olympia Resources, which planned to take over.

"Even the people who don't like to think of growing businesses recognise that mineral sands does have and will have a strong future."

Mr Kiernan described Territory's current board as "very strong and competent".

"Next year, Territory will produce about 2.5 million tonnes of iron ore with a margin of $40-50 (per tonne), so that's going to be a very healthy and profitable business.

"It's going to make a bucketload of money."

Territory's previous deputy chairman, Andrew Simpson, becomes chairman.

Territory has also appointed the founder and chief executive of global supply chain manager Noble Group, Richard Elman, to the board as a non-executive director.