+++++++++++++++++++++++++ In an announcement to the ASX Ltd on April 29, 2002 Range Resources Ltd ("the Company") advised that the resolution passed by the General Meeting of January 21, 2002 approving the acquisition of Donnybrook Gold Pty Ltd ("Donnybrook") by the issue of securities in the Company to the shareholders of Donnybrook had lapsed. Donnybrook has made application for an exploration licence (70/2481) over an area in the south west of Western Australia which has historically produced gold.
The Company further advised that the parties had agreed to negotiate an amendment of the option and that a General Meeting would be called to present the proposal to the shareholders again.
The parties have subsequently agreed to amend the option to the Company to acquire Donnybrook on the basis of the issue of an option fee of 11,250,000 options each to acquire one ordinary share in the Company at 10 cents on or before June 30, 2004. These options are to be issued to the individual shareholders of Donnybrook in proportion to their relevant interest in Donnybrook.
The consideration payable by the Company to acquire all the shares in Donnybrook is 22,500,000 shares in the Company. The option period to acquire Donnybrook commences on the grant of the exploration licence and expires on September 30, 2002.
The acquisition is conditional on:
1. shareholder approval; and
2. the grant of exploration licence 70/2481.
It is anticipated that the Notice of Meeting will be dispatched to members next week and that the General Meeting will be held early in July.
In respect of the application for the exploration licence the Company advises that the notice period for registration of objections under the Native Title Act expires on July 6, 2002 and that no objections have been lodged to date.
In the period since the Company acquired the option to acquire Donnybrook it has commissioned extensive enhanced imagery interpretation studies of the Donnybrook goldfield for exploration target delineation. These studies have identified a number of promising structures in and around known gold anomalies for further exploration.
J Toby COMPANY SECRETARY
RRS Price at posting:
0.0¢ Sentiment: None Disclosure: Held
