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Lihir-Equigold merger likely to come sooner: Hood
By ANTON HUAFOLO
THE Lihir-Equigold merger is likely to be finalised sooner if Equigold shareholders later this month vote to receive 33 Lihir Gold shares for every 25 shares they hold.
Lihir Gold managing director Arthur Hood, in the company’s first quarter production report last Wednesday, said Equigold shareholders will vote on the proposed share arrangement scheme on May 30, which if agreed to, would pave the way for the Lihir-Equigold merger to take place.
“The merger is to be achieved by a scheme of arrangement, with EQI (Equigold) shareholders to receive 33 LGL shares they own for every 25 EQI shares they hold.
“The scheme will involve the issue of 280 million LGL shares, equivalent to approximately 13% of the merged company,� Mr Hood said.
The merger with the Perth-based mid-tier gold producer is part of LGL’s plan to further diversify from its Lihir and Australia’s Ballarat operations as well as to ensure LGL’s continued growth.
“EQI has an operating mine at Mt Rawdon in Queensland, Australia, and a mine under construction at Bonikro, in Ivory Coast, West Africa, which is scheduled to begin production in July.
“In addition, the company has an extensive exploration portfolio in Ivory Coast,� he said.
Despite the fact that gold production has dropped by 18% in the first quarter of 2008 in Lihir, total production for the year is expected to be in excess of 850,000oz from both the Lihir and Ballarat projects.
This will be boosted by over 170,000oz from Equigold’s Bonikro and Mt Rawdon mines from June to December this year.