Sydney, Sep 28, 2007 AEST (ABN Newswire) - On 4 September 2007, Fairstar Resources Ltd (Fairstar) advised the Company of its intended takeover of Golden West Resources (ASX: GWR) with an offering of five Fairstar shares for one Golden West Resources Limited (Golden West) share. At the date of this letter, Golden West has not yet received a Bidder's Statement (required under Corporations Law) from Fairstar and so it is not yet in a position to advise shareholders as to a recommended course of action. Shareholders are not required to take any action at this stage in response to the offer.
The Board of Golden West will act vigorously to ensure value is protected for all shareholders in responding to this Bid. Once Golden West receives Fairstar's Bidder's Statement, it will prepare a Target Statement, as required by the Corporations Act, which will analyse the proposal from Fairstar and provide a recommendation to shareholders. As part of this Target Statement, an Independent Expert's report will be completed, which will provide shareholders with an independent view of whether the proposed offer from Fairstar is fair and reasonable. As previously advised, PricewaterhouseCoopers has been retained to provide this report.
The Board recommends that shareholders take no action with respect to the offer from Fairstar until they have received the Board's recommendation and had the opportunity to read the Target Statement and consider the Independent Expert's report.
Significant progress continues to be made with the Company's Wiluna West Iron Ore Project. The Company will continue to maintain its focus on ensuring that progress with the project continues in order to capitalise on the current strong conditions for resource project development. A summary of your Company's progress in development of the Wiluna iron ore asset is as follows:-
- In April 2007, the Company announced an initial Inferred Mineral Resource at Wiluna of 50 million tonnes at 61% Fe. A target was set to establish a resource of at least 100 million tonnes at similar grade by 31 December 2007. Further iron ore deposits have been identified on Unit C at C1, C2, C5 and C Regional. Iron ore mineralisation extensions at depth to 209 metres were identified at C4 deposit.
- Drilling and assay data from the current resource drilling campaign are now being collated by the Company and a resource upgrade is anticipated in the near future.
- Mapping over a 7km section of the southern 20kms of the C unit, which is partly under cover, has identified additional iron targets.
- The Wiluna Project has two transport export options, the Port of Esperance estimated at approximately $25 per ton or the proposed new port at Oakajee estimated to cost less than $20 per ton.
Your Directors are committed to the future development of the Wiluna West Project and maximising value to all shareholders.
Once again, we recommend that shareholders take no actions with respect to the offer from Fairstar until they have received the Board's recommendation.
We invite you to direct any queries to the Company via email to admin@goldenwestresources.com, and record your email address via the Company's website at www.goldenwestresources.com. All announcements released to the ASX are emailed to those shareholders who have registered.
Contact
Gary W. Hutchinson
Managing Director
TEL: +61-8-9201-9202
Fax: +61-8-9201-9203
www.goldenwestresources.com
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