drbubb Posted May 8, 2007 Report Share Posted May 8, 2007 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 Link to comment Share on other sites More sharing options...
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