Source: www.theaustralian.news.com.au
Monarch, Tanami may revisit merger next year
PURE SPECULATION
Robin Bromby
December 09, 2006
MICHAEL Kiernan and Denis Waddell are keeping in touch, even after calling off merger talks this week. Kiernan decided the 42,000sqkm of tenements owned by Waddell's Tanami Gold on the West Australian-Northern Territory border would be too much of a distraction for his Monarch Gold Mining Co team (who were licking their lips at the thought of being let loose there). He wants to get Monarch producing 150,000oz of gold yearly starting in 2007 from Davyhurst mine, bought from Croesus Mining (now in administration) and Minjar. It's called staying focused.
His other problem with Tanami was the concern that the treatment plant at its Coyote gold mine would need further investment. The two men spoke again on Thursday and haven't ruled out taking another look at the merger next year. But Kiernan is comfortable with the $2.5 million Monarch invested in Tanami in October. Meanwhile, Tanami is a little more flush this week after auctioning off forfeited shares for $10.6 million. These ordinary shares were available after investors holding out-of-the-money contributing shares failed to meet their calls for conversion.
Link: http://www.theaustralian.news.com.au/story/0,20867,20895718-18261,00.html
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