There’s a very interesting newcomer on the Heritage Top Twenty -...

There’s a very interesting newcomer on the Heritage Top Twenty - Merrill Lynch (Australia) Nominees Pty Limited - with 14,663,920 shares, or 5.1 per cent of the company. That makes Merrill the second largest holder! There’s been no disclosure as yet and they have appeared out of nowhere.

There is a very interesting scenario unfolding. As holders know, the Heritage ground sits right next to Newmont’s. Unless Newmont find a new gold resource (unlikely now) it will have to close up shop, probably within 18 months. I can’t see any reason why Newmont would want to do this, if they could avoid it. They have a large investment in their Waihi gold operations and closure would bring substantial restoration and other costs. Here would be large job losses.

Next door, Heritage already has a large JORC resource and under its new management is currently surveying and drilling. I think there is every probability they’ll find more, high grade gold veins.

It must be quite clear to Newmont that Heritage now means business and that it won’t be falling over and giving up its leases. It’s no longer an option for Newmont to sit back and wait.

It will be fascinating to see what unfolds in coming months. But one thing is for sure, Heritage is now very much in the driving seat.