Goliath out of mining

Press, 15 February 1986, Page 21

Goliath out of mining

The Goliath Mining Company, Ltd, plans to sell its mining licences and equipment, the directors announced yesterday.

The West Coast gold miner announced last month that it was stopping gold mining after incurring big losses and breakdowns to equipment.

The directors also announced yesterday that it would allot an additional 7.5 million 25c ordinary shares to South Pacific Finance, Ltd, at par value, subject to the approval of shareholders. South Pacific Merchant Finance holds a term debt of about 51.65 M with Goliath and the miner’s directors said that the proceeds of fhe allotment would be used to reduce liabilities associated with mining expenditure incurred by the company. : The merchant bank already holds about IM shares in Goliath, and the issue will take its stake in the miner to about 31 per cent.

The directors told the Stock Exchange that inde-

pendent professional valuations were in the process of being prepared on all items and it was expected that assets would be sold at those valuations on a staged basis over the next few months. A letter to shareholders containing a notice of meeting and a resolution providing for the allotment would be posted to shareholders on February 19.

The uncertainty associated with the value of cash and other proceeds realised from sale of mining assets meant the directors were not yet able to give a precise indication of the net asset backing a share after reconstruction. “Present indications were it would be in the region of 5c a share.”

The directors were in the early phases of studying possible alternative future activities for the company but no decisions had yet been taken by the board, they said.

“Further statements will be made on this subject when appropriate.”