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UK-quoted Scarborough Minerals (SCRB.L)

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Top mining execs push Scarborough merger deal

Robert Champion de Crespigny, of Normandy fame, and Keith Liddell, erstwhile MD of Aquarius Platinum, pad up for a big innings.


Author: Barry Sergeant / Thursday , 03 May 2007


Two minerals sector capital builders with proven track records, Robert Champion de Crespigny and Keith Liddell, are on the road detailing the friendly merger of Scarborough Minerals (LSE: SCRB, £0.53. ASX: SRB, A$1.19) (formed itself from the merger of Greenwich Resources plc, Buka Minerals Limited and Danae Resources NL) and Mineral Securities (ASX:MSX, A$1.75).


The two key factors for prospective shareholders appear to be, first, an analysis indicating that Scarborough is currently trading at a discount of about 55% to its underlying value, and Mineral Securities at a discount of some 33%.


Second, the fact that Mineral Securities holds 14% of Platmin (PPN, C$8.28), arguably the pick of the South African platinum juniors. The stake in Platmin comprises roughly a third of the pro forma group's net asset value (NAV). The group will also own 20% of CopperCo (listed in Australia), 25% of Lady Loretta (a Queensland zinc asset controlled by Xstrata), and 20% of Tianshan Goldfields (listed in Australia).


The issue with Scarborough and Mineral Securities, and with the pro forma merged group, is the undesirable characterization of a passive investment trust. As such, the key driver for the merged group will be immediate implementation of a strategy to transform a resources investment company into a mining house with operating cash flow alongside investments.


...more: http://www.mineweb.net/mineweb/view/minewe...7&sn=Detail

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