Focus Minerals Ltd (ASX:FML) Completes Takeover of Crescent Gold
Perth, Oct 6, 2011 AEST (ABN Newswire) - Focus Minerals Limited (
ASX:FML), will emerge as one of Australia's top gold producers with projected annual production of +200,000 ounces in 2012 following the successful completion of its off-market takeover Offer for Crescent Gold Limited (ASX:CRE) (TSE:CRA).
At the close of the Offer at 7pm EST last night, Focus had a relevant interest in Crescent of 81.57%.
Focus also has an opportunity to increase its interest via the conversion of debt owed by Crescent to Focus. Assuming full draw down of these loans, a 5 cent per share conversion price, and full exercise of all associated options, Focus would increase its interest in Crescent to 86.45%.
The Focus Offer received strong support, as demonstrated by the fact that 1,914 of 2,320 shareholders accepted the Offer, representing an 82.5% shareholder acceptance.
"The combined gold production of Focus and Crescent will be in excess of 200,000oz per annum and the companies will hold a combined JORC reportable resource base of 4.3Mozs of gold, and possess outstanding growth potential across two major Western Australian mining regions," said Focus Chief Executive Campbell Baird.
"Given the assets of Crescent, the very strong anticipated operating cash flow of Focus and based on current valuation analyses, the Focus business (including its majority ownership of Crescent) has the potential for a significant re-rating."
Mr Baird said the Focus management team has the operational experience to maximise the value of Crescent's assets, and has already been exerting its control over the past number of weeks in working together with the Crescent team to focus on mine planning and operational execution.
"We've just successfully completed campaign 8 and already have around 85% of the ore mined and stockpiled for campaign 9 which starts 13 October," said Mr Baird. "We have a strong pipeline of projects in Laverton and with the right focus in place, we will see these operations continue to develop and deliver further value back to shareholders."
Focus intends to seek to re-constitute the Crescent Board in the near future and also seek the de-listing of Crescent from the Australian Securities Exchange and the Toronto Stock Exchange (TSX).
About Focus Minerals Ltd
With over 3.8Moz of Mineral Resource, Focus Minerals Limited (ASX:FML) has a highly strategic portfolio of assets across Australia's two leading gold producing districts – the Kalgoorlie/Coolgardie belt and Laverton – and the financial muscle to continue to unlock further potential for growth.
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