Gold royalty company Euro-Nevada (TSE) has acquired an interest in an Australian public company which holds a 10% net smelter return royalty on the Henty gold project in Tasmania.
Euro-Nevada acquired 7.1 million shares representing 19.9% of Little River Goldfields NL, and plans to make a takeover offer for all the issued shares of Little River at 48 cents per share. The offer is conditional upon Euro-Nevada acquiring a minimum 50.1% ownership in the company. The Henty property is owned by Renison Goldfields Consolidated of Australia, which is developing the project towards production.
Renison expects production to begin in the first quarter of 1996 at an annual rate of 100,000 oz. for 4.5 years. Capital spending by Renison is estimated at A$53 million.
Another shareholder of Little River is Repadre Capital (TSE), which does not intend to increase its shareholding beyond the current level of 4.8 million shares, or 13.7%.
Be the first to comment on "Euro-Nevada buys into Aussie company"