29th Sep 2009 08:43
FOR IMMEDIATE RELEASE 29 September 2009
ALLIED GOLD LIMITED
("Allied Gold" or the "Company")
ALLIED GOLD POST BIDDER STATEMENT IN RELATION TO TAKEOVER OFFER FOR ASG
Further to the announcement made on 17 September 2009, Allied Gold Limited ("Allied Gold") today lodged on the ASX its Bidder Statement in relation to the agreed takeover offer for all of the issued shares of Australian Solomons Gold ("ASG") pursuant to the Australian Corporations Act and Canadian securities laws (the "Offer"). A copy of this Bidder Statement, along with the National Instrument 43-101 Report on the Company's assets, is available from the Company's website, www.alliedgold.com.au. The following additional information is provided below.
Updated Information on the Offer
ASG has now published its audited annual results for the year ended 30 June 2009 showing a Loss of A$15,740,560 on nil Turnover and, as at 30 June 2009, Gross Assets of A$74,602,058.
ASG has been pursuing funding for the Gold Ridge Project, with production currently planned to commence in the first quarter of calendar 2011.
If the Offer is successful, the operations of ASG will be merged into that of Allied Gold to form a larger, more diversified gold production and exploration company with material mining interests in the Pacific Rim. Allied Gold would, as a priority, pursue the re-development plans for the Gold Ridge project, drawing on the combined company's greater access to capital and Allied Gold's experience and track record in commissioning new mines in remote locations.
The Pro forma Balance Sheet based on the successful completion of the Offer would be as follows (in Aus$):
|
Allied Gold Limited as at June 30, 2009 $ |
Australian Solomons Gold Limited as at June 30, 2009 $ |
Australian Solomons Gold equity raising July 14, 2009 $ |
Consolidation Adjustments $ |
Consolidated $ |
||||||
|
CURRENT ASSETS |
||||||||||
|
Cash and cash equivalents |
20,529,979 |
2,567,242 |
8,567,931 |
(2,000,000) |
29,665,152 |
|||||
|
Trade and other receivables |
800,494 |
542,367 |
- |
- |
1,342,861 |
|||||
|
Inventories |
14,269,497 |
18,378 |
- |
- |
14,287,875 |
|||||
|
Derivative financial instruments |
2,025,000 |
- |
- |
- |
2,025,000 |
|||||
|
Other assets |
246,792 |
- |
- |
- |
246,792 |
|||||
|
Total Current Assets |
37,871,762 |
3,127,987 |
8,567,931 |
(2,000,000) |
47,567,680 |
|||||
|
NON-CURRENT ASSETS |
||||||||||
|
Derivative financial instruments |
686,759 |
- |
- |
- |
686,759 |
|||||
|
Available for sale financial assets |
348,974 |
- |
- |
- |
348,974 |
|||||
|
Property, plant and equipment |
145,861,709 |
4,824,120 |
- |
- |
150,685,829 |
|||||
|
Exploration and evaluation expenditure |
11,115,743 |
66,649,951 |
- |
(20,336,816) |
57,428,878 |
|||||
|
Total Non-Current Assets |
158,013,185 |
71,474,071 |
- |
(20,336,816) |
209,150,440 |
|||||
|
Total Assets |
195,884,947 |
74,602,058 |
8,567,931 |
(22,336,816) |
256,718,121 |
|||||
|
CURRENT LIABILITIES |
||||||||||
|
Trade and other payables |
20,683,026 |
1,294,272 |
- |
- |
21,977,298 |
|||||
|
Borrowings |
2,094,483 |
- |
- |
- |
2,094,483 |
|||||
|
Derivative financial instruments |
10,197,958 |
- |
- |
- |
10,197,958 |
|||||
|
Provisions |
491,709 |
141,889 |
- |
- |
633,598 |
|||||
|
Total Current Liabilities |
33,467,176 |
1,436,161 |
- |
- |
34,903,337 |
|||||
|
NON-CURRENT LIABILITIES |
||||||||||
|
Borrowings |
3,845,885 |
- |
- |
- |
3,845,885 |
|||||
|
Derivative financial instruments |
5,748,977 |
- |
- |
- |
5,748,977 |
|||||
|
Provisions |
2,782,426 |
5,135,367 |
- |
- |
7,917,793 |
|||||
|
Total Non-Current Liabilities |
12,377,288 |
5,135,367 |
- |
- |
17,512,655 |
|||||
|
Total Liabilities |
45,844,464 |
6,571,528 |
- |
- |
52,415,992 |
|||||
|
NET ASSETS |
150,040,483 |
68,030,530 |
8,567,931 |
(22,336,816) |
204,302,129 |
|||||
|
EQUITY |
||||||||||
|
Contributed equity |
173,098,363 |
92,376,481 |
8,567,931 |
(44,682,767) |
229,360,009 |
|||||
|
Reserves |
1,199,540 |
2,314,362 |
- |
(2,314,362) |
1,199,540 |
|||||
|
Accumulated losses |
(24,257,420) |
(26,660,313) |
- |
24,660,313 |
(26,257,420) |
|||||
|
TOTAL EQUITY |
150,040,483 |
68,030,530 |
8,567,931 |
(22,336,816) |
204,302,129 |
Future Fundraising
Allied Gold intends to finance the Gold Ridge project through a combination of debt and equity sources, including cash flow from existing operations. Upon completing a Compulsory Acquisition, Allied Gold intends to review ASG's existing funding arrangements, in particular the proposed ASG Funding Facilities. Following its review, Allied Gold will make an assessment of the optimal funding arrangements suitable for the Combined Company having a view to its long term capital structure.
An equity raising will be considered, if required, and will draw on Allied Gold's supportive and diverse shareholder base and new investors. It is anticipated that Allied Gold's capacity to raise capital will be enhanced by its greater size and increased investor appeal.
Combined Company's Reserves and Resources Information
The information below reflects the current announced mineral reserves and resources information published by Allied Gold and ASG respectively. Both Allied Gold and ASG are actively conducting drilling and analysing results to identify additional resources and to prove up resources to reserves and the results are expected to be released by each company on an ongoing basis.
Reserve estimates
|
Category Unit |
Proven |
Probable |
Total |
||||||
|
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
|
|
Allied Gold |
|||||||||
|
Simberi |
12.1 |
1.2 |
467 |
10.0 |
1.2 |
381 |
22.2 |
1.2 |
848 |
|
ASG |
|||||||||
|
Gold Ridge |
- |
- |
- |
19.6 |
1.8 |
1,148 |
19.6 |
1.8 |
1,148 |
|
Combined |
|||||||||
|
Total |
12.1 |
1.2 |
467 |
29.6 |
1.6 |
1,529 |
41.8 |
1.5 |
1,996 |
Note Table shows rounded estimates. This rounding may cause some apparent computational discrepancies.
Resource estimates
|
Category Unit |
Measured |
Indicated |
Inferred |
All Categories |
||||||||
|
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
Mt |
g/t Au |
Koz |
|
|
Allied Gold |
||||||||||||
|
Simberi |
15.2 |
1.2 |
569 |
31.6 |
1.2 |
1,243 |
77.8 |
1.1 |
2,748 |
124.6 |
1.1 |
4,560 |
|
ASG |
||||||||||||
|
Gold Ridge |
5.9 |
1.9 |
346 |
23.6 |
1.7 |
1,226 |
8.3 |
1.8 |
465 |
37.8 |
1.7 |
2,037 |
|
Combined |
||||||||||||
|
Total |
21.1 |
1.3 |
915 |
55.2 |
1.4 |
2,469 |
86.1 |
1.2 |
3,213 |
162.4 |
1.3 |
6,597 |
Note Table shows rounded estimates. This rounding may cause some apparent computational discrepancies.
Information relating to ASG's mineral reserves and resources is taken from the ASG Annual Information Form dated September 25, 2008 and the ASG technical report dated May 30, 2007 prepared by Alistair Barton, FDip. Geol, FAusIMM, CPGeo and Eddie McLean, BSc (Metallurgy) MAusIMM of Ausenco International Pty Ltd., Dr.William J. A. Yeo, PhD MAusIMM of Hellman & Schofield Pty Ltd., Gary Benson, BE (Mining) MAusIMM of IMC Consultants Pty Ltd., and Marshall Lee, BSc MAusIMMMQELA and Michael Gowan, MSc, RPEQ, PrEng of Golder Associates Pty Ltd.
The Simberi resources have been classified in accordance with the guidelines of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC, 2004).
Next Steps:
Allied Gold expects the Offer to close around mid November 2009 (unless extended) and further announcements will be made in due course.
Following completion of the Offer Allied Gold intends to publish a reserve and resource statement on a combined basis.
For enquiries in connection with this release please contact:
Allied Gold Limited
Frank Terranova, Finance Director
T: +61 7 3252 5911
M: +61 409 140 894
Roland Cornish
Beaumont Cornish Limited
T: +44 (0) 20 7628 3396
Competent Persons
The information in this Stock Exchange Announcement that relates to Mineral Resources, Mining, Exploration and Metallurgical results, together with any related assessments and interpretations, has been approved for release by Mr C R Hastings, MSc, BSc, M.Aus.I.M.M., a qualified geologist and full-time employee of the Company. Mr Hastings has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Hastings consents to the inclusion of the information contained in this release in the form and context in which it appears.
Related Shares:
ALD.L