Summit rejects Paladin takeover offer

02 March 2007

[Summit Resources, 2 March] SummitResources has rejected Paladin Resources' A$1 billion ($792 million)hostile takeover bid, describing the offer as "opportunistic andinadequate." Summit's managing director, Alan Eggers, said that theoffer did not reflect the value of its uranium, base metal and ironprojects. Summit controls the Valhalla uranium deposit in northwestQueensland, with 26,000 tonnes U3O8 as indicated and inferredresources, but which is open and likely to increase. Another 11,500tonnes of resources nearby are also part of the Isa Uranium JointVenture. Last year Paladin bought a 50% interest in the joint venture,so the takeover bid would have brought several prospective propertiesunder Paladin’s full ownership. Eggers said, "We believe Paladin nowrecognises the inherent value of the Mount Isa uranium province, whichis one of the most prospective uranium provinces in the world today."He also noted that the offer came just two weeks before the AustralianLabor Party (ALP) is expected to change its 'no mines' policy.

Further information

Paladin Resources
Summit Resources

WNN: Australian uranium bid

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