Bharti buying GBS gold assetsLooks like the purchase is going to be in a private entity. AAB would probably invest if they have some cash.
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Forbes & Manhattan Announces Acquisition of Significant Australian Gold Assets
TORONTO, ONTARIO -- (Marketwire) -- 04/08/09 -- Forbes andManhattan, a private Canadian merchant bank ("Forbes" or "TheCompany"), is pleased to announce it has executed a Heads of Agreement("HOA") in connection with its proposed acquisition of a number of pastproducing gold assets in Australia, specifically in the NorthernTerritory and Western Australia. These assets will be held by CrocodileGold Inc., a newly incorporated private company, through its 100% ownedsubsidiary Crocodile Gold Australia Pty Ltd. ("CGA").
The assets comprise the Burnside and Tom's Gully Projects inthe Northern Territory, and the Nicolson's Project in WesternAustralia. The former two projects include mines which were producingas recently as September 2008 at an annualized production rate ofapproximately 140,000 ounces of gold at a cash cost (at currentexchange rates) of approximately US$550 per ounce. Total JORC compliantresources have most recently been stated as 4.5 million ounces (inpublicly available independent technical reports as filed by theprevious operator). The assets were purchased out of administrationthrough a tender process directed by Ferrier Hodgson of Perth,Australia (the "Administrator").
The total purchase price will be AUS$51 million (US$36million), payable in instalments over a 12 month period. Thetransaction will be subject to certain conditions including ForeignInvestment Review Board approval in Australia, and transfer of tenementtitle to CGA.
The Burnside and Tom's Gully Projects are located 90 - 285kilometres south of Darwin and were most recently owned and operated byGBS Gold International Inc. (previously a public company listed on theToronto Stock Exchange ).
In making this announcement, Forbes Chairman and CEO, Stan Bharti,stated "We are thrilled with this transaction and with these assets andlook forward to placing them back into production this year. Theprojects have the potential to make a meaningful contribution to theeconomy of the Northern Territory and we believe the assets provide uswith an excellent base from which to develop additional opportunities."