Disposal
January 20 2004 - 3:49AM
UK Regulatory
RNS Number:4160U
Gympie Gold Limited
20 January 2004
GYMPIE GOLD LIMITED
(Receivers and Managers Appointed)
(Voluntary Administrators Appointed)
ASX & AIM Announcement
19 January 2004
GEGM Offered for Sale by International Tender
* The Receivers and Managers have completed their initial operational
and financial review following their appointment to the Gympie Gold Limited
Group on 30 December 2003.
* As a result of the review, together with the continuing uncertainty
associated with the recommencement of operations at the Southland Coal Colliery,
the Receivers and Managers are to offer for sale Gympie Eldorado Gold Mines Pty
Ltd ("GEGM"), or its assets, together with its interest in D'Aguilar Gold
Limited.
* An international sale process will commence this week with an
information flyer calling for expressions of interest. Non-binding indicative
offers are due by 18 February 2004 and final offers by 17 March 2004.
* Assisting the Receiver and Manager in the sale process will be Mr
Ronnie Beevor of Beevor and Associates Pty Limited, who has extensive experience
in Investment Banking in the resource sector in Australia and overseas.
* Mr Andrew Love, Receiver and Manager commented; "Since appointment
there has been a significant and high level of interest in the gold assets from
local and international interested parties. Discussions have also occurred with
various shareholder / investor groups who are currently exploring the
possibilities of re-capitalising and restructuring the group".
* Mr Love stated; "There will be about 30 redundancies implemented
during the course of the week, the majority of which will occur at GEGM where
exploration and mine development has been curtailed, otherwise gold mining
operations continue".
Mr Love said that in relation to the Southland Colliery, significant effort and
money had been expended with Thiess contractors with a view to assessing at the
earliest opportunity the prospects or otherwise of re-entering the mine and
recommencement of mining operations.
* He stated; "At present we are still unable to provide a conclusive
timetable as to when this will occur and this position is being monitored on a
week by week basis".
* The present situation is that gas monitoring at the coal mine
indicates that the fire appears to have been contained. A bore hole is being
drilled to lower a camera and other instruments some 450 metres to a target
destination between the postulated source of the fire and the longwall unit. The
results will be known within two weeks but may be inconclusive. At the same time
it is planned to reventilate part of the mine at very low volumes in an attempt
to clear residual gases produced by the fire in the area of the longwall unit.
________________________
For further information in relation to the Receivership or media enquiries,
please contact Andrew Love, Receiver and Manager on (02) 9286 9999. Any
enquiries concerning the sale, please contact Robert Pfaff of Ferrier Hodgson on
(02) 9286 9999.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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