JOHANNESBURG (I-Net Bridge) -- Metorex [JSE:MTX], South Africa’s diversified miner, says it has agreed to inject its Barberton Gold Mines’ stake into Pan African Resources [AIM:PAF] in return for a 55% stake in the AIM-listed gold explorer.
“This transaction is a great opportunity for Metorex to expand its gold interests into exploration and to house this in a separate listed company,” Metorex chief executive, Charles Needham, said in a statement.
The value of the 74% interest works out to 35.62 million sterling (US$70 million).
In 2003 Metorex, Crew and MCI Resources (empowerment group) announced the 255 million rand purchase of the ETC mines from AVMIN, which were renamed Barberton. Then in September this year the company bought Crew Gold’s [TSX:CRU] 20% stake in the assets for R84 million ($12 million), valuing a 74% stake at around R310 million ($44 million).
The other 26% stake in Barberton will continue to be held by an empowerment group to comply with the country’s mineral law.
The three shafts on the property, Fairview, Sheba and New Consort produce about 100,000 ounces of gold per annum.
Pan African Resources has gold exploration projects in Mozambique and the Central African Republic.
Pan African will seek a listing on the JSE, which will give Metorex’s gold assets a market value and possibly an unlocking of value in the company.
Metorex, which has a large copper mine in Ruashi which was commissioned this year, could see the bulk of its earnings coming from this commodity, hence the move towards reflecting the value of its other assets. It also sold its coal interests earlier this year.
For Pan African the deal brings a producing asset, setting it apart from its peer group, according to the acquisition announcement.
In January sxr Uranium One [TSX:SXR] injected its gold assets into JSE-listed Sub Nigel for an 80% stake in that company.
2)
GFMS CEO sees $800/oz gold with retail investment
By Karl Heilman
20 Dec 2006 at 11:25 AM
Paul Walker, GFMS CEO, said in an interview that there’s a realistic chance gold could reach $800. Walker said the brunt of gold investment has been from the professional side, adding that a pick up in investment on the retail side is necessary to see gold prices reach $800.
“I think the professional interest in the market with investment flows coming out of the US and into other assets could push gold to $700 and above. “
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