277 words
13 October 2005
Business News Americas
English
(c) 2005 Business News Americas (BNamericas.com)
Colombia's national university has certified an analysis that shows local gold miner Frontino Gold Mines (FGM) is worth roughly US$160mn, the head of the company's restructuring process José David Castellanos told BNamericas.
The valuation is part of Frontino's restructuring process. Fronterino operates in the municipality of Segovia in western Colombia's department of Antioquia.
FGM's restructuring involves transforming the company from a publicly listed corporation to a limited partnership in which ownership would be divided among workers and retired staff.
"Now this valuation must be approved by Colombia's companies regulator as well as the portion [of the company] owned by each worker - that is to say, we must define the value and determine what their stake will be in the company," Castellanos explained.
Once the regulator approves the calculation, workers will have 90 days to decide if they want to accept the company shares as payment or proceed with the sale.
"If workers do not reach agreement to accept the stake as payment within this period, Frontino will enter into a public tender offer so that interested investors can buy it out," the official said.
But he said workers are open to accept shares and later decide if they want keep or sell them.
UK junior Cambridge Mineral Resources "is analyzing possibilities to bring other UK investors interested in the Frontino Gold Mines purchase," said Carlos Alberto Uribe, director of national mining chamber Asomineros.
Frontino Gold Mines' 12Mt in reserves will last 20 years.
Cambridge (LSE: CMR) explores for gold and base metals in Europe and South America's Andes mountains.
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