A Change of Guard

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Friday, 4 January 2013

Cambodia lures ex-Adamus executives [from Australia]

By Nick Evans, 
The West Australian  
January 4, 2013,
 
Former Adamus Resources executives Milan Bojanjac and Ron Heeks are plotting a return to the Australian bourse, through a deal with the Charlie Bass-backed Geopacific Resources.
In a deal it said would give it access to a substantial land- holding in Cambodia, Geopacific announced plans for a one-for-one all-scrip acquisition of unlisted company World Wide Mining Projects. Worldwide is chaired by former Straits Resources chief executive Milan Jerkovic. Both Mr Bojanjac and Mr Heeks serve on its board, and will step across to Geopacific when the acquisition closes.
With Geopacific shares closing at 10� yesterday, up 1.1�, the planned 53.7 million share issue values Worldwide at $5.4 million.
The prize is 158sqkm of exploration tenements in the north of Cambodia, now opening up to mining. Worldwide and Geopacific will pay $US700,000 ($666,500) for a one-year option to buy an 85 per cent stake in the ground for $US14 million from South Korean-owned Golden Resources Development, which pegged the tenements in 2008 and has been drilling for the past two years. The remaining 15 per cent stake would be held by Cambodia's Royal Group, the largest company in the emerging economy.

While returning some high copper grades, the Korean drilling was of variable quality, and not done to JORC-compliant standards, according to Mr Bass, who said he accepted the price tag seemed steep on face value. But the Aquila Resources director said due diligence had convinced him its potential was worth the option fee, with a final decision dependent on Geopacific's exploration work.
"We need to have something in the order of $250 million of contained metal there to justify the payment and carrying work on," he said. "But we did some quick calculations from the drilling results, though they need to be verified, and we could very easily see that kind of dollar value there."

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