PERTH, Australia, May 25, 2011 /CNW/ - Straits Resources Limited
("Straits") announced today that it intends to make an offer to acquire
all of the issued and outstanding common shares of Goldminco
Corporation (TSX-V: GCP) ("Goldminco") that it does not already own at
an offer price of Cdn$0.10 in cash per share. Straits currently owns,
directly or indirectly, approximately 71.33% of the issued and
outstanding common shares of Goldminco. The offer price represents a
premium of approximately 82% over the closing price of the common
shares on the Toronto Venture Exchange on May 24, 2011, the last
trading day prior to this announcement.
Straits has entered into a lock-up agreement with Anglo Pacific Group
PLC ("Anglo"), the second largest shareholder of Goldminco, pursuant to
which Anglo, subject to certain limited exceptions, has irrevocably
agreed to deposit and not withdraw its and its affiliates common shares
under the offer. Anglo owns, directly or indirectly, approximately
17.01% of Goldminco.
Provided that Anglo deposits its common shares under the offer as
required by the terms of the lock-up agreement, Straits will have a
sufficient number of common shares to acquire all of the common shares
not deposited under the offer by way of a subsequent acquisition
transaction. Straits currently intends to proceed with a transaction
to acquire the balance of the common shares following the completion of
Straits has cash resources available to finance the offer. The offer
will be subject to certain conditions including that the common shares
held by Anglo shall have been validly deposited and not withdrawn under
the offer. The offer is not subject to a minimum tender condition
other than the common shares held by Anglo.
Full details of the offer will be included in the formal offer and
take-over bid circular (the "Circular") that is expected to be mailed
to Goldminco shareholders in the near future. The offer will be open
for acceptance for at least 35 days following the commencement of the
References in this report to "Straits Resources Limited", "Straits" and
"Company" include, where applicable, its subsidiaries.
Certain statements contained in this press release constitute
forward-looking statements or forward-looking information. The words
"intend", "may", "would", "could", "will", "plan", "anticipate",
"believe", "estimate", "expect" and similar expressions are intended to
identify forward-looking statements. These statements are based on
certain factors and assumptions and while Straits considers these
factors and assumptions to be reasonable based on information currently
available, they may prove to be incorrect. Forward-looking statements
are given only as at the date of this release and Straits disclaims any
obligation to update or revise the forward-looking statements, whether
as a result of new information, future events or otherwise, except as
required by law.
About Straits Resources
Straits Resources Ltd (ASX Code: SRQ) is a mining and exploration
company focused on copper and gold in Australia and Asia. Straits owns
and operates the Tritton copper mine in NSW and the Mt Muro gold mine
in Indonesia and has an exciting exploration portfolio focusing on
projects in NSW (through Goldminco) and South Australia. Straits also
owns Magontec, a European based specialty metals business.
SOURCE Straits Resources Limited
For further information:
Mr Milan Jerkovic - Chief Executive Officer
on +61 8 9480-0500, or visit our website at www.straits.com.au.