IGC 0.00% 33.5¢ international goldfields limited..

response to asx query

  1. 44 Posts.
    14 November 2008
    Australian Securities Exchange Limited
    Exchange Plaza
    2 The Esplanade Perth
    PERTH WA 6000
    Via e-lodgement
    As announced by International Goldfields Limited (IGC) on 6 November 2008 (Announcement), IGC engaged a leading advisory firm to prepare a report valuing IGC’s interest in 3 mining tenements known as the Tubatse Project (Project) for the purpose of forming the basis of negotiations between IGC and Nkwe Platinum Limited (Nkwe) in respect of its proposed merger.
    The draft valuation report prepared for IGC contained 2 sets of valuations. A valuation based on a technical report dated 1 August 2008 (Technical Report) valued IGC’s interest in the Project within a range of A$44.18 million and A$63.57 million, with a preferred value of $53.88 million. The secondary valuation included in the draft report valued the same interest within a range of A$53.88 million and A$69.92 million, with a preferred valuation of $61.9 million.
    Given the recent significant decrease in platinum prices, the directors of IGC used the lower range of the valuations (which was based on the valuation provided in the Technical Report) in the Announcement.
    The engagement by IGC of the leading advisory firm in respect of the valuation of the Project has since been terminated and therefore a final valuation of the Project will not be provided to IGC. IGC and Nkwe have agreed to use the valuation contained in the draft report as the basis for negotiating the consideration payable under the proposed scheme between IGC Nkwe (as per the option agreement between IGC and Nkwe).
    Yours faithfully
    Mr Tony Sage
    International Goldfields Limited
    For further information:
    Tony Sage, Executive Chairman, International Goldfields Limited
    Ph: 08 9388 0744 / 0419 905 908
    David Tasker, Professional Public Relations
    Ph: 08 9388 0944
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