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Business |
Emperor plans capital return of
A$0.05/share
Mineral Resources
Enga declines to exercise pre-emptive rights over Porgera stake
By BRIAN GOMEZ in Sydney
EMPEROR Mines has announced that as part of its proposed corporate
restructure, it will make a capital return of A$0.05 a share to
all shareholders, accounting for A$52 million (K133 million) of
surplus cash.
The statement also disclosed that Mineral Resources Enga has
waived its pre-emptive rights to increase its stake in the Porgera
Joint Venture following negotiations with Barrick Gold.
These developments would need the approval of Emperor shareholders
for the sale of the company’s 20% stake in Porgera to Barrick Gold
for US$250 million (K755.6 million) plus an adjusted amount.
The stake had been purchased from Oil Search in October 2003 for
US$77.1 million (K233 million).
After putting on A$0.01 on Wednesday following the announcement it
shed A$0.05 yesterday to close at A$0.12 (30.7 toea).
As part of the overall deal, Barrick will also gain an option to
purchase 153,325,943 shares or 13% of Emperor’s issued capital,
but this has to be exercised within 10 days of endorsement by
Emperor’s shareholders.
Following the closure of the company’s hedge book, outstanding
loans and the capital return, Emperor would be left with A$63
million (K161.2 million).
The company told the Australian Stock Exchange this would be used
to fund existing operations - the company now only owns the
Tolukuma gold mine in Central province – as well as to pursue
strategic acquisition and growth opportunities.
It said an extraordinary general meeting of shareholders would be
held in coming weeks to approve the sale of the Porgera stake and
the appointment of two new directors.
“The proposed transaction will allow Emperor to retire all major
debt facilities, better placing the company to exploit future
growth and acquisition opportunities,” it said.
Emperor’s major shareholder, DRDGold, will convene a meeting of
shareholders on June 27 in Johannesburg to support the proposed
Porgera sale.
The DRDGold board has already expressed support for the move.
 
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