Monarch and Siberia to merge

MICHAEL Kiernan’s gold empire is starting to take shape with the company he chairs, Monarch Resources, set to merge with the Andrew Forrest-chaired Siberia Mining to create the largest Australian-controlled landholder in the Kalgoorlie region.
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Siberia drilling

Ben Sharples

The combined vehicle will have more than 2 million ounces in gold resources, a gold processing plant and a large, contiguous land holding in the Kalgoorlie region of Western Australia.

The proposed merger is via an off-market takeover bid, with Siberia shareholders being offered one fully paid Monarch share for every two Siberia shares. In addition, holders of listed 20c Siberia options will be offered one fully paid Monarch share for every 10 options.

Siberia has recommended its shareholders accept the offer.

The combined company will bring together Monarch’s recently acquired idle Davyhurst operation, which includes a 1.2 million tonne per annum CIL gold processing plant, and Siberia’s large ground position in the Kalgoorlie region, including a 1.4 million resource base and projects with near-term production potential.

The near-term projects include the 750,000oz Siberia gold camp and the 419,000oz Ida gold project, both of which are located within economic cartage distance of the 1.2Mtpa processing plant at Davyhurst.

Monarch managing director John Davis told first production would likely come from the Siberia and Ida camps, which are currently subject to feasibility studies, but he would not be drawn on timing. was unable to reach Michael Kiernan.

On the board front, Forrest along with Siberia non-executive director John McKee will be invited to join the Monarch board as non-executive directors, as will Andrew Stocks and Jonathon Downes as executive directors.

Kiernan, who is also chairman of gold miner Croesus, will retain his role at Monarch, as will managing director John Davis and existing directors Colin Smith, David Macoboy and Philip Botsis.