SLATER BID FOR MINING COMPLEX

Press, Volume CIX, Issue 32265, 7 April 1970, Page 18

SLATER BID FOR MINING COMPLEX

(.V.Z. Press Assn — Copyright) SYDNEY, April 6. Slater, Walker Securities (Australia), Ltd, has made a §3.68m bid for all the issued capital of Alluvial Gold, Ltd, and Ravenshoe Ti n Dredging, Ltd. The bids, made through Slater, Walker’s wholly owned subsidiary, Beaver Underwriting Corporation, Ltd, are 1000 c a share for alluvial gold and 180 c a share for Ravenshoe. Slater, Walker is seeking 51 per cent acceptance from both companies; if it fails to gain this acceptance from either company, the bid for both companies will be withdrawn.

The price offered for Alluvial Gold is exactly double the closing sale cf 500 c on the Sydney Stock Exchange on April 2.

There are 80,000 Alluvial Gold shares on issue making this offer worth $BOO,OOO. The offer for Ravenshoe is 35c above the closing price of 145 c. With 1,600,000 shares on issue, the bid values Ravenshoe at $2,880,000. The operations of Ravenshoe and Alluvial Gold are closely interwoven. The boards of both companies are identical. Alluvial Gold obtains more than 60 per cent of its income from Ravenshoe —Alluvial owns the leases on which Ravenshoe is extracting in Quensland. Raven-

shoe pays Alluvial 21 per cent of its profits in the form of a royalty payment. The chairman of Slater, Walker (Mr lan Murray) said the company was interested in taking over a number of mining operations as going concerns.

He said there was an attractive cash flow within the Alluvial Gold-Ravenshoe complex.