Sunday, March 4, 2007

Summit reject Paladin Resources bid.

Summit Resources, 2 March] Summit Resources has rejected Paladin Resources' A$1 billion ($792 million) hostile takeover bid, describing the offer as "opportunistic and inadequate." Summit's managing director, Alan Eggers, said that the offer did not reflect the value of its uranium, base metal and iron projects. Summit controls the Valhalla uranium deposit in northwest Queensland, with 26,000 tonnes U3O8 as indicated and inferred resources, but which is open and likely to increase. Another 11,500 tonnes of resources nearby are also part of the Isa Uranium Joint Venture. Last year Paladin bought a 50% interest in the joint venture, so the takeover bid would have brought several prospective properties under Paladin’s full ownership. Eggers said, "We believe Paladin now recognises the inherent value of the Mount Isa uranium province, which is one of the most prospective uranium provinces in the world today." He also noted that the offer came just two weeks before the Australian Labor Party (ALP) is expected to change its 'no mines' policy.

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