Gindalbie
Metals Limited (ASX: GBG)
GINDALBIE
UPDATE – MELEWAR SHAREHOLDING
Gindalbie
Metals Limited (ASX: GBG – “Gindalbie”) is pleased to
provide an update regarding the shareholding of a substantial shareholder,
Melewar Steel Ventures Ltd (Melewar), which has a portion of its shareholding
subject to an equity finance contract with Opes Prime Stockbroking, which has
had a Receiver-Manager appointed.
Under
the terms of Melewar’s equity finance contract with Opes, we understand
that the Receiver believes it has the right to sell those shares and it is
currently exercising those rights. Gindalbie has been informed by the Receiver
that approximately 32 million Gindalbie shares, representing 6.2% of the
Company’s issued capital previously held by Melewar, are in the hands of
three stockbroking firms, Goldman Sachs JBWere, Merrill Lynch and Dresdner,
which have instructions from the Opes Receiver to sell the stock. The ownership
of a further 0.6% remains unclear and Melewar is considering its rights in
respect of its position regarding the equity finance contract with Opes Prime
Stockbroking.
Gindalbie
has been actively facilitating interested parties to acquire all of those shares
and has received strong demand. Subsequently, the Company believes the firms
acting for the Opes Receivers will be able to affect an orderly sale of those
shares to a number of major institutional investors.
Melewar,
which has been a substantial shareholder of Gindalbie since 2004, still holds a
7.6% stake in the Company which is not subject to the facility and has
indicated its intention to retain those shares.
Gindalbie’s
Chairman, Mr George Jones, said the Company continued to value its relationship
with Melewar and would offer what support it could in respect of this issue.
“This
has been an unfortunate event involving one of our substantial
shareholders,” he said. “While this has been a market distraction I
am pleased with the substantial interest that has been evident to acquire any
available shares.
“These
events have not distracted Gindalbie from its key focus of pursuing the
development of the Karara Iron Ore Project, which we think is substantially
undervalued by the market in relation to the progress we have made. The
development of our world-class iron ore mine at Karara is effectively fully
funded through our Chinese joint venture partner Ansteel, which also has
offtake arrangements for all of the project’s iron ore products. We
also have infrastructure solutions in place covering rail, port and power and
we are progressing through the environmental approvals process.”
- ENDS -
For
further information:
|
Mr Garret Dixon/Mr Michael Weir
Managing Director/Corp Affairs Manager
|
Telephone:
(+61-8) 9480-8700
|
www.gindalbie.com.au
|
READ CORPORATE
Public Relations
Corporate Communications
T: (+61-8) 9388-1474
| F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
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