Western Mng. bids for Grandview Res.

VANCOUVER — Subject to shareholders and regulatory body approvals, Western Mining Corp., through its wholly-owned subsidiary wmc (bc) will take control of Grandview Resources. The Australian mining giant will spend approximately $95 million, or $9.55 per share to acquire all the common shares of Grandview. The shares were trading this week at around $7.

wmc (bc) already holds 3.5% of the outstanding Grandview shares and has agreements with four of Grandview’s directors and four European financial institutions to sell their combined 15.5% share holding under the offer. This agreement will terminate if the takeover is not completed by Jan 1.

If the offer is accepted by a minimum 90% of Grandview shareholders, wmc (bc) intends to invoke the compulsory acquisition provision under the British Columbia Company Act to get any shares which were not tendered.

Grandview operates the Carson Hill heap leach gold mine in California which in the latter part of this year has been up for sale. The mine is expected to produce up to 72,000 oz gold in the July ’87 to June ’88 operating year, which puts it among the top 15 U.S. gold producers. Reserves are 16.1 million tons grading 0.046 oz gold per ton, enough for a minimum 9-year mine life.