Vancouver — Australian gold miner AurionGold has sold its 21% stake in Australian-listed Zimbabwe Platinum Mines (Zimplats) for A$35.3 million.
Impala Platimun Holdings picked up the shares at A$1.90 each. Zimplats shares last traded at A$1.33 each. AurionGold previously identified Zimplats as a non-core asset and recently stated that all the proceeds from the sale will be distributed to shareholders.
An AurionGold statement said: “The board of AurionGold will meet in October to consider the timing of this distribution, in light of the progress made on the sale of other non-core assets by the company,”
AurionGold is trying to fend off a hostile takeover bid from Canada’s Placer Dome (PDG-T). The world’s seventh largest gold producer is offering 17.5 of its shares for every 100 shares of AurionGold, plus A$0.35 per share in cash.
The takeover, if successful, would give Placer full ownership of the rich Granny Smith gold mine in the Western Australia and increase its stake in the Porgera mine in Papua New Guinea to 75% from its current 50% interest. As a result, Placer would move into the # 5 slot of global gold producers with annual production of 3.8 million oz. Synergies from its existing operation would produce savings of US$25 million per year and pushed the cash costs to produce an oz of gold down to an enviable US$175.
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