Update On The “OX”

Here is an article pertaining to my new stock purchase “OXR” (See previous post)
It makes for interesting reading.

Oxiana announces bid for Agincourt
Monday January 29, 2007, 10:32 am

Metals miner Oxiana Ltd has made a friendly takeover bid for Agincourt Resources Ltd, valuing the target at $415 million.

The offer of 0.65 shares in Oxiana for each Agincourt share has been recommended by the Agincourt board.

Oxiana says its bid values Agincourt at $415 million, a 34 per cent premium to its share closing price of $1.44 on January 24.

Agincourt is the owner of the Martabe gold project in Indonesia, the Wiluna gold operation in Western Australia and 57 per cent of Nova Energy Ltd, a uranium explorer and project developer in WA.

“The takeover represents significant value for Oxiana Shareholders by increasing gold resources to around 16 million ounces (including silver as gold equivalent ounces) through the Martabe project in Indonesia,” Oxiana said.

“Also included is the Wiluna Gold Operation in Western Australia which currently produces around 110,000 oz per annum and has resources of one million ounces.

“Oxiana is confident that the acquisition of Agincourt will add significant future value to shareholders,” it said.

Oxiana also said in its fourth quarter production report released on Monday that it had achieved its production targets for the year.

The first full year of copper cathode production at the Sepon project in Laos was 60,803 tonnes for 2006, including production of 15,862 tonnes in the December quarter.

“Production in 2007 is forecast to be between 60,000 tonnes and 63,000 tonnes,” Oxiana said.

Sepon also met its gold production targets, with 173,524 oz produced in the 2006 year and 40,907 oz in the December quarter.

But Oxiana warned that due to a lower mining inventory of oxide ore in 2007, gold production is expected to be around 100,000 oz.

“A major program on exploration and development drilling for further oxide gold is being undertaken and expected to result in additional resources and reserves,” the company said.

“In the short term, however, the present reserves are planned to be developed at a rate that will enable the phasing in of the planned primary gold output.

“Work on the primary gold processing plant feasibility study continues and is anticipated to be the source of increased gold production by 2009.”

Oxiana said the average received gold price in 2006 was $US598 ($A772.39) per oz.

Agincourt said in a separate statement that Oxiana’s offer of 0.65 Oxiana shares for every Agincourt share equated to $1.92 per Agincourt share, based on the Oxiana closing price on January 25.

It said the offer reflects a premium of approximately 39 per cent to the volume weighted average price for Agincourt shares in the 30 trading days prior to offer announcement.

“After careful consideration, the board of directors of Agincourt have unanimously resolved to recommend the offer to shareholders and have advised they intend to accept the offer with respect to their own shareholdings, in both cases subject to the absence of a superior offer,” it said.

“The Agincourt board believe that the strength of Oxiana’s balance sheet and cash flows together with their experience in South East Asia and in project development will be beneficial to the development of the Martabe gold project in Indonesia.”

Agincourt also agreed to remove the voluntary escrow over Newmont Mining Corp’s 19.9 per cent Agincourt holding, to allow Newmont and Oxiana to enter into an option agreement announced by Oxiana on Monday.

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