Straight off there web site. Has anybody ever heard of this company before?
Caldera Resources Inc. Wishes To Announce The Proposed
Acquisition of Remington Resources
Caldera Resources Inc. wishes to announce the proposed acquisition of
Remington Resources N.L.. Remington is a private Australian company
that is involved in diamond exploration in Western Australia. Remington is
to be acquired in exchange for the issuance by Caldera of 12,756,252
shares. If this transaction is completed, and based on a total of 19,024,121
Caldera shares currently outstanding, there would be 31,780,373 Caldera
shares outstanding.
John L. Daniels and Christopher R. Reindler, Chairman and President,
respectively, of Caldera as well as directors and shareholders of Caldera,
are the founders, controlling shareholders and members of the
management of Remington. As a result of the potential of Remington's
properties demonstrated by the compelling exploration results to date, a
special committee consisting of the independent board of directors, Ross
Orr, John McBride and Eduard Ludwig, has unanimously recommended
this non-arm's length acquisition subject to ongoing due diligence and the
necessary regulatory approvals.
Caldera is engaged in diamond exploration in the Abminga region of
northern South Australia and is the major tenement holder in the region.
The acquisition of Remington gives Caldera participation in another major
diamond exploration project. The acquisition also provides benefits to
Caldera through the sharing of resources, management and exploration
expertise.
Remington Resources properties are geographically and geologically
distinct from Caldera's properties. Remington Resources' principal
exploration project is a group of Exploration Licences located in the north
central part of Western Australia, approximately 400 kilometres east of the
nearest major iron ore mining towns of the Pilbara region. Remington
Resources was formed to carry forward exploration in an area on the
north-eastern margins of the Pilbara craton selected on the basis of
conceptual regional geological and structural modelling that recognized the
structural similarities between the diamondiferous Kimberley Provinces
with those on the margins of the Pilbara region. The conceptual model was
the result of many years of regional geological and structural investigations
carried out by Dr. Daniels prior to his association with either Caldera or
Remington.
Applying these regional studies to the northeastern boundary of the
Pilbara craton, a search was made to locate similar regional geological
and structural settings to those that control the emplacement of
diamond-bearing intrusives on the northeast margin of the Basin. This
search identified several areas with potential to host kimberlite or lamproite
intrusives.
In May 1995, broad scale surface sampling was carried out in two target
areas to test the validity of the Daniels exploration hypothesis.
Approximately 40 kimberlite indicator minerals were reported from five
sample locations. This confirmation of the exploration potential led to an
aggressive program of tenement acquisition by Remington that now covers
1,149 square kilometres. Follow-up aeromagnetic surveys totalling 18,480
line kilometres later identified a large number of anomalies with
characteristics consistent with kimberlite / lamproite pipes. Surface
sampling of some aeromagnetic anomalies has confirmed the presence of
kimberlite indicator minerals.
As a result of very encouraging preliminary results from the Tabletop
Project, Remington identified two additional project areas in the same
region. Stockdale Prospecting Limited, the Australian subsidiary of De
Beers, has shown interest in exploring one of these additional project
areas and has recently entered into a joint venture with Remington to
explore this project area. The joint venture agreement provides that
Stockdale may earn a 51% interest in any Exploration Licences acquired
for diamond potential within the "Exploration Area", which covers 2,150 sq.
km. most of which is outside the existing tenements, by spending Aust.
$1.0 million in the three year period after September 25, 1998 (the
"Commencement Date"). If the interest is earned, Remington shall
contribute on a pro rata basis to additional work programs or contribute
nothing whereby Stockdale can earn a further 24% interest by expending
an additional Aust. $4 million in the 5 year period after the Commencement
Date, taking its interest to 75%. At that point, Remington will have 60 days
to determine whether to contribute to its 25% interest or receive a 10%
carried interest until the decision to mine. The Exploration Area was the
subject of an airborne survey carried out by Remington for 6,350 line km.
Caldera recently appointed Professor Peter Nixon as a Special Advisor to
the board. Professor Nixon is Emeritus Professor at the School of Earth
Sciences, University of Leeds, United Kingdom. He is a recognized world
authority on the occurrence of diamonds and diamond exploration and the
petrology and mineralogy of kimberlites and related rocks. He has
co-authored several scientific papers on the geology and mineral
chemistry of the diamondiferous lamproite instrusives of the Kimberley
Region of Western Australia. The west Kimberley lamproite fields were the
basis for the conceptual model for the Tabletop project. Professor Nixon's
experience with the West Kimberley lamproites is expected to be of
considerable benefit in the exploration of the Tabletop project.
The acquisition of Remington Resources by Caldera is subject to
regulatory approval and the approval of disinterested shareholders.
Pursuant to applicable regulatory requirements, a valuation by a qualified
independent valuer is required for both Remington Resources and Caldera
which will be summarized in an information circular to be sent to Caldera
shareholders for a special meeting to be held on December 15, 1998. |
