Intrepid and Emperor create a dynamic and well funded gold producer

Posted by Daniel Gleeson on 20th September 2007

Intrepid Mines and Emperor Mines have signed an agreement to merge the two companies. The new company, to be named Intrepid Mines, will be an international gold producer, developer and explorer listed on both the TSX and ASX. The companies say “the combination of Emperor’s balance sheet strength, Intrepid’s producing Paulsens gold mine and its Casposo development project, and both companies’ exploration assets, together with the combined skills of the two management teams, will create a well balanced company.”

The merged Intrepid’s strengthened balance sheet and the ability to secure project finance, will allow the company to immediately move forward with corporate objectives, including:

  • Accelerated underground exploration at the Paulsens mine
  • Imminent development of the Casposo gold/silver Project in Argentina on an unhedged basis and continued examination of early expansion options
  • Immediate exploration at Taviche (Mexico) and Tujuh Bukit (Indonesia) and an expanded exploration budget of up to approximately A$8.0 million per annum
  • Improved capacity to target project and corporate acquisition opportunities.

The proposed merger, if it proceeds, will take place by way of a scheme of arrangement.

Emperor’s 78.7% shareholder, DRDGOLD, has informed Emperor that it intends to re-focus its attention on opportunities in South Africa and so intends to seek to realise its investment in an orderly manner prior to the scheme meeting convened by the Court to approve the proposed scheme. Emperor has agreed to work with DRDGOLD to seek to facilitate such an exit. The proposed merger with Intrepid is therefore subject to DRDGOLD being able to successfully realise its investment in Emperor prior to this time.

The boards of directors of Emperor and Intrepid have resolved to support the proposed merger. Management of the merged company will be led by Brad Gordon as CEO and Laurence Curtis as President. The merged company’s head office will be located in Brisbane, Australia and the capital markets and the Americas exploration office will be located in Toronto, Canada. The Board of the merged company will comprise at least three representatives from each of Intrepid and Emperor. Colin G Jackson will continue as Chairman of the merged company.