Chance to co-own Ghana gold mine

WEALTH CREATION

An Australian-listed firm with a big Malaysian shareholding is offering investors a chance to co-own a gold mine in Ghana with an estimated US$1.6 billion (US$1 = RM3.41) of gold reserve.

But they first need to subscribe to Noble Mineral Resources Ltd's private placement of up to 150 million shares, or a 45 per cent stake in the company, at 40 US cents each.

This will boost the company's paid-up shares to 309 million units.

Noble Mineral, which is 28 per cent-owned by Tunku Naquiyuddin Tuanku Jaafar through Global Gold Holdings Bhd, expects to raise up to A$60 million (A$1 = RM3.09) from the placement.

The money will be used to kickstart the Central African Gold Ghana Ltd (CAGGL), which operates the gold mine called Bibiani.

Noble Mineral - listed on the Australian Stock Exchange in June 2008 - late last month won a global tender for CAGGL, beating more than 200 bidders.

CAGGL was bought from a South African bank, Investec via the issuance of four million new Noble Mineral shares with an option of another six million new shares.

Noble Mineral will also assume CAGGL's debt of less than A$40 million. The acquisition is due for completion in April 2010 but the company has already started managing the Bibiani mine operation.

Noble Mineral managing director Wayne Norris said it hopes to rope in Malaysian investors in particular.

Tunku Naquiyuddin, who is chairman of Noble Mineral, said it had talked to six major local institution groups.

"We are starting our (private placement) roadshow today until Wednesday," he said at a briefing on the CAGGl acquisition in Kuala Lumpur yesterday.

Tunku Naquiyuddin said Joint Ore Reserve Committee - an industry standard pronounced by three industry associations in Australia - officially estimated that the Bibiani mine has 1.6 million ounces of gold reserves.

"Our own estimate is about five million ounces," Tunku Naquiyuddin remarked.

The company, Norris said, expects to start producing gold within 12 to 18 months with a yearly output of 100,000 ounces.

Gold prices now stand at about US$1,100 per ounce, from about US$800 an ounce as at end-2008, Noble Mineral officials said. The cost to produce it in Ghana is around US$450 to US$550 per ounce.