Fresh from its rejection of a takeover bid from Fairstar Resources Ltd, Osborne Park-based Golden West Resources Ltd has appointed former Portman Mining managing director Geoff Wedlock as chairman, following John Daniels' retirement.
Fresh from its rejection of a takeover bid from Fairstar Resources Ltd, Osborne Park-based Golden West Resources Ltd has appointed former Portman Mining managing director Geoff Wedlock as chairman, following John Daniels' retirement.
Mr Wedlock, who recently retired as managing director of Grange Resources Ltd, has more than 35 years experience in the iron ore exploration and development industry.
The full text of a company announcement is pasted below
Golden West Resources (Golden West) is pleased to announce the appointment of respected iron ore executive Geoff Wedlock as Chairman of the Company, following the retirement of founding Chairman Dr John Daniels. Mr Wedlock's appointment will commence 30 November 2007.
Mr Wedlock has more than 35 years experience in the iron ore exploration and development industry. His experience will greatly assist in the development of the Wiluna West Iron Ore Project.
His appointment is consistent with the strategy to build Golden West's management capability to reflect the growing
potential of the Wiluna West Iron Ore Project.
Prior to joining Golden West, Mr Wedlock held a number of senior executive roles in the iron ore industry. He is a former managing director of leading iron ore miner Portman Mining, advanced magnetite developer Grange Resources, and Executive Vice President and CEO of BHP Iron Ore Pty Ltd.
Geoff has been responsible for the development of many of BHP's major assets in the Pilbara.
Mr Wedlock brings not only a deep understanding of the iron ore industry and the challenges associated with the development of major projects, but an extensive network of contacts within the international mining and investment communities.
Commenting on his appointment, Mr Wedlock said "I am delighted to join Golden West at this pivotal time in the company's development. The company has a very exciting future, based on the potential of the excellent, high quality haematite resource at Wiluna West. I am very excited about the prospect of building the team and capability to take this project forward."
In conjunction with Mr Wedlock's appointment, Golden West has appointed Capital Investment Partners (CIP) to the role of Lead Manager to place up to 14,477,689 of the Company's shares with institutional and sophisticated professional investors.
This placement represents approximately 19.7% of the company's existing issued share capital or 16.5% of the issue capital following the placement. The placement is subject to shareholder approval and will require the successful approval of Resolution 3 at the forthcoming Annual General Meeting of members on 29 November 2007.
If Resolution 3 is not passed and the Company is prevented form placing the full desired allotment of shares, Golden West will utilise it's15% placement capability to raise sufficient funds to progress the development of the Wiluna West, once that placement capability becomes available.
The placement will be priced at a minimum of 80% of the weighted average market price of Golden West shares at the date of the placement. It is anticipated that this placement will raise approximately $25.8 million, assuming a 5 day weighted average price of $2.23 at the time of the placement.
CIP has supported the development of a number of early stage companies and projects in the resources industry, most recently raising $50 million of development capital for Sundance Resources.
It is the intention of CIP that the stock will be placed with a number of bona fide institutional and sophisticated professional investors. CIP and Azure Capital, Corporate Advisors to Golden West, believe that this distribution of stock will most efficiently achieve the Company's objectives of broadening and deepening the market for GWR shares, increasing the liquidity of the stock, and expanding stock-broking and research support of the stock. To ensure the appropriate distribution is achieved no individual investor, or group of associated investors, will receive an allocation of stock equal to or exceeding 5% of the issued capital of GWR and stock will not be placed with existing GWR shareholders.
In recognition of the support provided by current shareholders, Golden West is also pleased to announce a non-renounceable rights issue that will entitle existing shareholders to subscribe for shares on the same terms as the placement, on the basis of one new share for every 15 shares already held. It is anticipated that the rights issue will raise approximately $10.5 million based on the same price as the placement issue.
These two funding initiatives will raise in total approximately $36 million, and are expected to provide sufficient funding to progress further exploration drilling at Wiluna West necessary to fully define the potential mineral resource, as well as progress development studies for the Wiluna West Iron Ore Project.
The appointment of Mr Wedlock and CIP highlight the Company's ability to advance the Wiluna West Iron Ore Project and represents the commencement of a new stage in Golden West's development.
