Australasian Launches New Global Tantalum Venture with KEMET
AUSTRALASIAN GOLD MINES NL 2001-02-06 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
Australasian Gold Mines NL (ASX: ATE) has put the finishing touches
to its new tantalum venture with the world's largest manufacturer of
tantalum capacitors, the NYSE-listed KEMET Corporation, today
(Tuesday) executing agreements to form a new joint venture company
focused on the fast-growing sector.
Under the agreements finalised today, Australasian and KEMET
Corporation's Australian subsidiary, KEMET Tantalum Pty Ltd, will
each hold a 50% interest in Tantalum Australia - a new company which
will own and fund the development of Australasian's existing tantalum
assets in Australia, as well as seek new project opportunities on a
global basis.
KEMET Tantalum is providing A$10 million in funding to the new
company to acquire its 50% interest - funding which is initially
being applied to the establishment of a pilot plant for one of
Australasian's existing tantalum assets, its Dalgaranga Project in
Western Australia.
The US-based giant is also investing directly in Australasian by
subscribing for 18 million shares in the Company at A$0.25 per share,
which will give it a 10% fully diluted stake and raise approximately
A$4.5 million.
Australasian's Managing Director, Mr Michael Fotios, said the
agreements, which were signed in Perth today, would establish
Australasian as a key player in the global tantalum market - which is
currently experiencing an unprecedented period of growth with strong
demand and a very favourable long-term price outlook.
"We are delighted to have established a working relationship with a
company like KEMET Corporation, which has a strong vision for the
future of the tantalum industry," Mr Fotios said. "We look forward to
building a business which, we believe, has exceptional growth
potential."
The finalisation of the agreements today will see KEMET Corporation's
President and Chief Operating Officer, Mr Charles Culbertson II, join
the board of Australasian with immediate effect.
As well, Mr Culbertson will be appointed to the board of Tantalum
Australia along with two other senior KEMET Corporation executives,
Mr Harris Crowley and Mr Michael Boone.
"We now have a corporate structure and an exceptional team in place
to quickly accelerate the exploration, identification and development
of new and existing tantalum resources in Australia and overseas in
order to increase the supply of this important raw material for the
high-growth electronics industry," Mr Fotios said.
Mr Culbertson, who was in Perth for the signing following a visit to
Australasian's Dalgaranga Tantalum Project yesterday, said: "Today
marks the commencement of a very exciting new business venture which
will seek to establish an independent supply source of tantalum to
meet increasing demand for the metal. Australia has quality tantalum
resources as well as the expertise and technical capabilities to
build on its already strong position in this market."
"We believe that Tantalum Australia will be a powerful new force in
the tantalum industry which will be of considerable strategic
significance for KEMET Corporation in securing new supply sources for
our continued growth," Mr Culbertson added.
Other elements of the agreement between Australasian and KEMET
Tantalum include an off-take agreement for KEMET Tantalum to purchase
all concentrate produced by the Dalgaranga pilot plant and assistance
in procuring up to A$40 million in project finance to fully develop
Dalgaranga.
Critically, both companies have agreed to give Tantalum Australia the
exclusive right to assess and develop future tantalum deposits that
may be introduced by either party and also to undertake a feasibility
study on the establishment of future downstream processing options to
add further value to the products in Australia.
KEMET Corporation is the largest manufacturer of solid tantalum
capacitors and the fourth largest manufacturer of multilayer ceramic
capacitors in the world and is a significant consumer of tantalum
powder. KEMET Corporation is listed on the New York Stock Exchange
(Code: KEM) in the USA and has a market capitalization in excess of
US$2 billion. Further information about KEMET Corporation can be
obtained from the company's website at www.KEMET.com.
Released by: On behalf of:
Jan Hope/Nicholas Read Mr Michael Fotios
Jan Hope & Partners MANAGING DIRECTOR
Telephone: (08) 9388-1474 Australasian Gold Mines NL
Telephone: (08) 9386-7211
Mobile: (0419) 995 503
NOTE: A full presentation on Australasian's new tantalum venture,
will be held in Perth today at 3.30pm at the Parmelia Hilton, hosted
by Mr Fotios and Mr Culbertson. For more information, please call Jan
Hope & Partners on 08 9388-1474. |
