Finalises Tantalum Deal
AUSTRALASIAN GOLD MINES NL 2001-04-17 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
Australasian Gold Mines NL (ASX: ATE) today (Wednesday) finalised its
new tantalum venture with US-based electronics giant KEMET
Corporation, settling the $14.6 million transaction to establish the
Perth-based Company as a significant force in the global tantalum
business.
The settlement marks the launch of Tantalum Australia, a newly
established joint venture company in which KEMET has injected $10
million to acquire a 50% interest alongside Australasian, and the
completion of a $4.6 million placement by Australasian to KEMET. It
follows shareholder approval for the transaction, which was obtained
earlier this week.
Tantalum Australia will own and fund the development of
Australasian's existing tantalum assets in Australia and seek new
project opportunities on a global basis.
Australasian's placement to KEMET is of 18.29 million shares at $0.25
per share, giving it a 10% fully diluted stake in the Company.
The Company's Managing Director, Mr Michael Fotios, said the
completion of the deal represented a significant milestone for
Australasian and had been strongly supported by shareholders earlier
in the week.
"We believe that the tantalum industry offers excellent growth
opportunities, not just in the current strong market but also in the
long-term on a sustainable basis," Mr Fotios said.
"We already have quality assets, we have a partner that is committed
to the growth and development of this venture in the years ahead, and
we have a strong funding position which will enable us to accelerate
the development of our projects and generate significant value for
shareholders," he added.
Australasian's assets in Australia already include the Dalgaranga
Tantalum Project in Western Australia, (where a pilot plant was
commissioned earlier this year and is new producing), the Walwa
Tantalum Project in Victoria and the recently acquired Binneringie
Project in Western Australia.
Resource definition drilling programs have recently commenced at both
Walwa and Binneringie, while a resource definition drilling program
will commence at the Mt Farmer Project at Dalgaranga in late April.
Key elements of the agreements between Australasian and KEMET
include:
* a $10 million funding in the joint venture for KEMET to acquire a
50% interest which will be used to advance the Dalgaranga, Walwa,
Binneringie and any future projects, including a feasibility study on
the full-scale development of the Dalgaranga Project and related
downstream operations;
* a placement of 18.29 million shares of Australasian stock to KEMET
at A$0.25 per share, which would give it a 10% fully diluted stake in
the company and raise $4.6 million. As part of this agreement, KEMET
is entitled to maintain a 10% investment in Australasian in the event
of the Company's capital expanding in the future and representation
in the form of one seat on the Board of Directors of Australasian;
* an off-take agreement for KEMET to purchase all tantalum
concentrate from the Dalgaranga pilot plant;
* assistance from KEMET in procuring project finance up to $40
million for construction of a full scale plant at Dalgaranga,
including the possibility of pre-payment for sales under long-term
take-or-pay contracts; and
* an agreement between the companies to give the joint venture the
exclusive right to assess and develop future tantalum deposits that
may be introduced to 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 of
approximately US$1.5 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 |
