HomeGoldTakeover bid for Mintails

Takeover bid for Mintails

Ergo – a Mintails/DRDGold
joint venture to explore,
evaluate and process
surface gold, uranium
and sulphur-bearing
Johannesburg, South Africa — MININGREVIEW.COM — 26 June 2009 – A take-over bid is being launched for Australian-listed junior gold company Mintails, which produces gold from two dump retreatment schemes on the East and West Rand in South Africa.
Quoting Miningmx, Fin24.com reported that Mintails also owned more than 1.5 billion tonnes of tailings dump material in these regions which could be treated to produce gold, uranium and sulphuric acid.

The report added that Mintails had requested a halt in trading in its shares on the ASX on Wednesday “as a result of the company being approached by a gold producer with South African operations with a view to acquiring the South African assets of the company.” It said Mintails expected to receive a written proposal within 24 hours, and that trading should resume on Friday morning.

Mintails chairperson Pat Smyth commented that the Mintails board was in the process of considering the proposal, and that the company had requested an extension to the trading halt.

“There’s nothing further I can say at this stage,” he added.

Miningmx reports that there are a number of possible candidates who might want to take over Mintails, judging by their stated strategies of uranium expansion and desire to grow through acquisition. They include DRDGold, Simmer & Jack, First Uranium, Gold One International, and Gold Fields.  It adds that the most likely suspect would appear to be DRDGold, which is already involved in a number of joint ventures with Mintails.

DRDGold’s stated strategy is to increase its gold production sourced from surface material, because this is cheaper and carries lower risk than underground mining.

DRDGold CEO Niel Pretorius declined to comment when approached by Miningmx.