takeover

Key Points
• IAMGOLD is proposing to acquire Gallery Gold for equivalent of 46¢ per share
under a scheme of arrangement
• Lion has entered into an option deed with IAMGOLD over its shareholding in
Gallery but retains the ability to benefit from higher offers
• If the scheme proceeds on the proposed terms, Lion may realise a pre tax
profit of $29 million
The Directors of Gallery Gold Limited (Gallery) have announced a proposed Scheme of
Arrangement with IAMGOLD Corporation (IAMG), a company incorporated in Canada and
listed on the Toronto Stock Exchange, under which IAMG will acquire all shares in Gallery.
Lion holds 108 million shares in Gallery, which represents 18.8% of its issued capital.
Under the scheme, Lion will receive one IAMG share for every twenty two Gallery shares it
owns.
Based on the closing price of IAMG shares and the C$/A$ exchange rate on Friday 2
December 2005, the proposed terms are equivalent to 46¢ per Gallery share. This
represents a premium of 40% above the one month weighted average share price of
Gallery.
At 46¢ per Gallery share, Lion may realise a pre tax profit of $29 million. Lion’s NTA (after
tax) at the 30th November was 189.7¢. At 46¢ per Gallery share, it equates to 197.5¢.
Lion has entered into an Option Deed with IAMG under which IAMG has the ability, subject
to certain conditions (including receipt of relevant approvals required from the PDF
Registration Board), to acquire Lion’s shares in Gallery. Lion retains the right to benefit
from higher offers.