WESTERN AREAS MULLS OFFERS FOR SOUTH DEEP

SOUTH Africa’s Western Areas is considering offers for its 50% stake in the South Deep joint venture with Canada’s Placer Dome as one of a couple of alternatives to unlock shareholder value. Western Areas said it would either sell the South Deep interest or using its cash resources to complete the project with a view to returning to shareholders any excess funds. It gave no further details save to say shareholders would be advised of the outcome of these considerations. Western Areas is virtually a cash shell with few operating assets apart from its South Deep stake and an 87% interest in minerals explorer Barnex. It put itself up for sale after plans to merge with other companies in the JCI-Randgold group failed earlier this year. In August, Placer Dome said talks to buy Western Areas’ stake in the South Deep gold mining joint venture had broken off due to price issues. – Reuters