Russ,
OT - a continuation.
I agree that the matters I mentioned before should have little to do with Birim, but there is a long history with the parties involved in this law suit and I'm sure that there is little love-loss between a few of the characters.
Below are three articles that will make for good reading. If you read these, you should come to the conclusion, as I did, that Samax was sold for next to nothing - especially now that ASL stock is in the toilet.
However, when Samax was sold at a time of depressed gold prices that looked like they were going to head lower, Samax probably did the deal with the understanding that the take-over by ASL would result in a much stronger and capable company that could realize Samax's ambitions. That hasn't happened.
You'll note from the following that Samax had some awesome projects in Ghana and Tanzania - and that by acquiring Samax - these were all acquired by ASL. If anyone would know the value of these projects, it would be the man who was in charge of the company that had them in the first place - Samax.
Finally, I think Samax was very astute at making deals when they were around. If Gandar becomes head of ASL, I think that prowess is likely to become part of ASL and therefore an expanding empire.
In any event, it's a good story that can - if it unravels - have serious ramifications on the price of gold for a very long time and, by extension, the fortunes of many small exploration companies such as Birim - or should I say, especially Birim since they have advanced exploration projects in Ghana.
In any event, here are the three articles I mentioned:
-----
SAMAX Gold Inc. is a rapidly developing gold-mining and exploration company focusing on Africa, with activities in Tanzania, Ghana,
Congo and Senegal.
Construction is currently underway on the Golden Pride Project located in the Nzega greenstone belt, Tanzania. SAMAX discovered
and owns 50% of the Golden Pride deposit expected to become the first large-scale gold mine in Tanzania since its independence.
Golden Pride's ore resource base is in excess of 20 million tonnes, containing 2.4 million ounces of gold. Production at Golden Pride is
scheduled to commence in the second quarter of 1998 and is expected to produce 170,000 ounces of gold per year for a 10-year
mine-life. SAMAX's partner and manager of mine development and operations at Golden Pride is Australia-based Resolute Limited.
SAMAX manages the joint-venture exploration covering 3,750 km2 under license in the surrounding Nzega greenstone belt.
In the historic Prestea gold district in Ghana, SAMAX is the manager and 50.4% owner of Prestea Sankofa Gold Limited, which
operates a 320,000 tonnes-per-year CIL plant, producing 15,000 to 20,000 ounces of gold per annum.
SAMAX has exploration programmes underway in its wholly-owned Geita, Ushirombo, and Lupa projects in Tanzania. It also holds an
extensive portfolio of gold projects in the known gold belts of Ghana, Congo and Senegal, totaling over 9,000 km2.
SAMAX is a Canadian-based company listed on the Toronto Stock Exchange under the symbol SMX and has 22.35 million shares
outstanding.
denvergold.org
-----------------
FOR FURTHER INFORMATION PLEASE CONTACT:
SAMAX Gold Inc. - London , England
Michael Martineau
Chief Executive Officer
(44)-171-638-4900
(44)-171-638-4881 (FAX)
samax@psilink.co.uk
or
SAMAX Gold Inc. - Toronto, Canada
Judith Webster
Manager Investor Relations
(416) 214-9000
(416) 214-9003 (FAX)
jwebster@interlog.com
There is a map available by contacting the company at the number
above or by accessing CCN's Internet Website at
cdn-news.com.
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: SAMAX GOLD INC.
TSE SYMBOL: SMX
JANUARY 14, 1998
SAMAX Gold Inc. New Orebody for Samax in Tanzania
TORONTO, ONTARIO--
NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
SAMAX Gold Inc. is pleased to announce further drilling results
from its 100 percent owned Kukuluma gold discovery in the Geita
District of Northern Tanzania. These include:
/T/
AIR 12 38 metres of 8.1 g/t Au (including 10 metres
of 28.5 g/t Au)
125 feet of 0.261 oz Au/t (including 33 feet
of 0.916 oz Au/t)
AIR 4 extended +80 metres of 6.9 g/t Au (including 32 metres
of 13.7 g/t Au)
263 feet of 0.222 oz Au/t (including 105 feet
of 0.440 oz Au/t)
AIR 26 12 metres of 6.1 g/t Au
39 feet of 0.196 oz Au/t
AIR 18 +33 metres of 3.8 g/t Au
108 feet of 0.123 oz Au/t
AIRB 144 +14 metres of 3.6 g/t Au
46 feet of 0.116 oz Au/t
AIR 11 45 metres of 3.1 g/t Au (including 28 metres
of 4.3 g/t Au)
148 feet of 0.099 oz Au/t (including 92 feet
of 0.138 oz Au/t)
AIR 21 +46 metres of 3.0 g/t Au (including 12 metres
of 5.8 g/t Au)
151 feet of 0.096 oz Au/t (including 39 feet
of 0.186 oz Au/t)
AIR 5 extended +55 metres of 2.9 g/t Au (including 11 metres
of 5.5 g/t Au)
180 feet of 0.093 oz Au/t (including 36 feet
of 0.177 oz Au/t)
AIR 29 25 metres of 2.6 g/t Au (including 5 metres
of 7.4 g/t Au)
82 feet of 0.083 oz Au/t (including 16 feet
of 0.238 oz Au/t)
AIR 20 52 metres of 2.5 g/t Au (including 12 metres
of 6.3 g/t Au)
170 feet of 0.080 oz Au/t (including 39 feet
of 0.202 oz Au/t)
/T/
These intersections occur as four near vertical sheets, one up to
50 metres true width and others up to 25 metres, within a 150
metre wide (492 feet) shear zone hosted in a banded
ironstone/chert and tuff horizon. The mineralized zones have now
been determined by 29 drill holes to have a strike length of at
least 600 metres (1969 feet) and to extend to a depth of over 120
metres (394 feet). The mineralization is open at both ends and at
depth (see accompanying map and cross-section). The weighted
average of all mineralized intersections obtained since discovery
is approximately 4.0 g/t gold.
Drilling, suspended for the Christmas period, has now resumed. On
completion of this phase in February it is proposed to calculate
an interim resource, devise a reserve definition program and a new
program of exploration to test similar targets in the licence.
The geophysical anomaly with which the Kukuluma deposit is
associated extends for over 1.5 kilometres. Shallow scout drilling
indicates that it contains gold throughout. Several other untested
targets are recognized within the 8 kilometre long gold in soil
anomaly, which surrounds it.
Dr Martineau, the Chief Executive Officer of SAMAX Gold Inc., said
"The Kukuluma deposit is clearly an orebody that could support a
new mine development. The substantial grades and widths make it
particularly attractive. The location, only 6 kilometres from
Ashanti's Geita deposit which is now in feasibility, will provide
an important plus through developed infrastructure."
The Kukuluma deposit is likely to become SAMAX's next major mine.
In 1998 SAMAX will concentrate on the Kukuluma feasibility study
whilst 50 percent partner Resolute Limited completes the
development of the jointly owned Golden Pride mine. Attention will
also be directed to the follow-up of the recently discovered and
similarly extensive gold in soil anomalies in the 100 percent
owned Sandema project in Northern Ghana. SAMAX has 22.35 million
shares outstanding and is listed on The Toronto Stock Exchange
under the symbol SMX.
-30-
cdn-news.com
--------------Mining Journal - September 4, 1998, Volume 331. No.8496
Lead Story:
Ashanti to buy Samax
Ashanti Goldfields Co. Ltd of Ghana intends to make a cash offer of C$7.94/share for Toronto-based Samax Gold Inc., in a deal worth a total of about US$135 million, with a view
to combining their contiguous gold properties in the Geita district of Tanzania. Samax has established a resource containing 1.6 Moz of gold at Kukuluma, which lies just 8 km from
the old Geita mine, where Ashanti has established a resource of 3.4 Moz. The offer stems from discussions and information sharing between the two companies regarding possible
co-operation in the area.
The chief financial officer of Ashanti, Mark Keatley, told Mining Journal that the offer represents a premium of around 30% over the recent price of Samax shares, but Ashanti can
afford to pay this level because the synergies offered by the Geita properties make the company worth more to Ashanti than to others. Ashanti was contemplating a 2 Mt/y operation
at Geita, at a capital cost of US$90 million, but according to Mr Keatley a combined operation of 4 Mt/y is estimated to cost only US$120 million. Thus the output would be roughly
double, at 400,000 oz/y, and at a lower cash operating cost of about US$180/oz, for just one-third more capital.
Mr Keatley calculates that the synergies are worth a total of US$50 million to Ashanti at current gold prices. Ashanti also notes that drilling by Samax on the Matandani prospect,
600 m along strike to the west of Kukuluma Hill, demonstrates similar mineralisation and Mr Keatley is optimistic that further discoveries are to made on both properties. Thus the
price of about US$37/oz of resources that Ashanti is paying (after adjusting for balance sheet items) may ultimately be reduced.
The decision to make the offer remains subject to certain preconditions, including an irrevocable undertaking from the largest shareholder in Samax, Adryx Mining and Metals Ltd
(part of the Swiss-based Addax & Oryx African oil trading group) that it will tender its 43% holding; similar undertakings from the directors of Samax with respect to their holdings
(principally Michael Martineau, with 4%, and David Sassoon, who controls about 4%); formal approval from Ashanti's board; a positive recommendation from the Samax board;
and the completion of satisfactory due diligence. The offer itself will be subject to Ashanti receiving sufficient acceptances to delist Samax, plus the normal regulatory approvals.
Adryx, Dr Martineau and other members of the Samax management have already agreed to tender their shares, totalling more than 50%, to Ashanti, provided that no higher offer is
made that Ashanti does not match.
Shareholders in Samax, which is advised by CIBC Wood Gundy, will also be given the option of taking an equity alternative, in the form of an unlisted security (the ratio to Samax
shares held will be announced when a formal offer is made) that will be convertible into ordinary shares in Ashanti at the rate of US$7.10/share, the average closing price of Ashanti
shares on the New York Stock Exchange for the 20 trading days to August 28, 1998. Mr Keatley said that this option was created at the request of Adryx Mining, which remains
committed to investing in the African mining sector.
Samax also manages and holds a 50% interest in the Golden Pride project in Tanzania, a joint venture with Resolute Ltd of Australia, which is scheduled to begin production later
this year at the rate of 180,000 oz/y of gold and a cash operating cost of US$199/oz (MJ, April 24, p.318). Elsewhere in Africa, Samax has a 50.4% interest in the Prestea Sankofa
tailings and waste retreatment operation, which produced 20,074 oz of gold in 1997, based on the 100-year-old Prestea mine. The company has gold exploration properties near
Prestea and elsewhere in Ghana, and also in Senegal and Congo (Brazzaville). Mr Keatley calculates that the acquisition will eventually add some 250,000 oz/y to Ashanti's gold
production, including a successful development at Geita, at a cash operating cost of less than US$190/oz.
mining-journal.com |
