Placer gains majority stake in Highlands Gold

Gold giant Placer Dome (PDG-T) now owns more than 58% of the shares of Highlands Gold, a Papua New Guinean mining company

“We have received a high level of acceptances and are happy with the outcome of our offer,” Placer Dome President John Willson says.

Highlands, which is headquartered in Brisbane, Australia, had extended to Jan. 25 the expiry date of its A75 cents-per-share offer, as requested by several shareholders of Highlands Gold. The previous expiry date was Jan. 18.

Placer decided to push ahead with its original plan for a hostile takeover of Highlands Gold after a proposed underwriting of a new company failed.

That underwriting, which endeavored to raise A$160 million at A30 cents per share, would have allowed Placer Dome to take over the massive Porgera gold mine in Papua New Guinea.

The division of Highlands Gold responsible for Porgera would have become a subsidiary of Placer Dome. Highlands Pacific, a new entity, would have kept the remaining assets of the former firm.

Highlands Gold had agreed to sell its 25% stake in Porgera for US$250 million, ending a hostile takeover bid for the entire company.

Since announcing its bid for Highlands in November 1996, Placer has increased its stake in the company to 58% from 33%.