Mr Wedlock has more than 35 years experience in the iron ore exploration and development industry and his appointment heralds a new era for the Company as it seeks to develop its flagship Wiluna West Iron Ore Project.
The appointment of Mr Wedlock follows the retirement of the Company's founding Chairman Dr John Daniels.
The Company extends its sincerest thanks to Dr Daniels for his outstanding contribution since Golden West's inception and listing in 2004 and wishes him a long and enjoyable retirement.
Mr Wedlock's appointment is consistent with Golden West's strategy to build the Company's management capability to reflect the growing potential of the Wiluna West Iron Ore Project.
Prior to joining Golden West, Mr Wedlock held a number of senior executive roles in the iron ore industry. He is a former managing director of leading iron ore miner Portman Mining, advanced magnetite developer Grange Resources, and Executive Vice President and CEO of BHP Iron Ore Pty Ltd, where he played a key role in the development of many of BHP's major assets in the Pilbara.
Mr Wedlock brings not only a deep understanding of the iron ore industry and the challenges associated with the development of major projects, but an extensive network of contacts within the international mining and investment communities.
Following the announcement of Mr Wedlock's appointment on 23 November 2007, specialist investment firm Capital Investment Partners (CIP) was appointed to manage and underwrite a placement equivalent to 19.7% of the Company's issued capital to institutional and sophisticated investors.
The placement was approved by Shareholders on 29 November and completed on 3 December 2007, raising $26.78 million. Some 14.477 million new shares were issued at $1.85 per share to professional investors in Australia, the United States, United Kingdom and Hong Kong.
As announced previously and in recognition of the support provided by current shareholders, Golden West will shortly undertake a non-renounceable rights issue that will entitle existing shareholders to subscribe for shares at the same discounted price of $1.85 per share, on the basis of one new share for every 15 shares already held.
It is anticipated that the rights issue will raise an additional $10.7 million to progress the Wiluna West project.
The placement and rights issue are together expected to provide sufficient funding to meet Golden West's requirements for the next 12 to 18 months, including drilling to fully define the potential mineral resource, as well as detailed prefeasibility and definitive feasibility studies.
The timetable for the rights issue is currently being finalised and will be announced shortly.
Golden West is confident that these above achievements clearly demonstrate its ability to advance the Wiluna West Iron Ore Project for the benefit of all Shareholders.
The Company repeats the unanimous recommendation of the Independent Directors to REJECT the all-scrip takeover offer from Fairstar Resources and IGNORE all correspondence from Fairstar Resources.
In the opinion of the Independent Directors, the Fairstar Offer:
- undervalues the Company;
- significantly dilutes shareholders' interests in the Wiluna West Iron Ore Project;
- does not offer access to any other substantial assets or increased capability within the combined entity;
- does not bring any meaningful cost synergies;
- will incur substantial costs that will deplete financial resources that could otherwise be applied to the development of Wiluna West; and
- may result in significant capital gains tax imposts for Golden West Shareholders who accept the Fairstar offer.
Golden West is pleased to advise that the Company's Target's Statement is now available at:
Golden West Resources Limited