Friday, 18th November 2005 (2915 views)

Monarch has announced plans to merge with rival gold mining outfit Serbia in a bid to "command a position at the forefront of emerging gold companies".

The combined company would have a resource base of over two million ounces and a powerful command of Australia's Davyhurst-Ida greenstone belt and Siberia Gold Camp mining sites.

Shareholders have yet to give the marriage their blessing, although Monarch's offer of one share for every two Siberia shares has received backing from Siberia's board.

The merger has been greeted as a logical step because of the soaring value of gold.

The two companies also claim they are a "good fit" for each other. Monarch recently bought a processing plant in Davyhurst, western Australia and Siberia's mining stronghold is just to the south.

"The combined group would have a dominant position in the prolific gold belts to the north west of Kalgoorlie, becoming the largest Australian-controlled regional tenement holder in the region," commented Siberia's Chairman, Andrew Forrest.

If the merger goes ahead, Monarch is expected to forge ahead with an aggressive growth strategy in the region.

 

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