Forrest Cart Before The Allied Ore Horse
Sydney Morning Herald
Friday April 11, 2003
Andrew Forrest, the Perth entrepreneur best known for his controversial time at the helm of Anaconda Nickel, yesterday confirmed he has his sights set on the iron ore of Western Australia's Pilbara region.
Tiny WA outfit Allied Mining & Processing has reached a memorandum of understanding with Mr Forrest's Metal Holdings, the private company which recently offloaded a sizeable Anaconda stake during a failed takeover bid from US vulture fund MatlinPatterson Global.
``It's one of those rare cases of the cart leading the horse," Mr Forrest said of Metal Holdings, an infrastructure group, getting involved with Allied's Mt Nicholas iron ore project.
``Normally you start with the mine then worry about the infrastructure. In this case it's the other way round."
Subject to shareholder approval, Allied will become Forrest's iron ore vehicle, with its gold projects in Peru and Chile to be spun off or sold.
Mr Forrest hopes to begin an ``extensive drilling program, geological evaluation and detailed metallurgical test work" shortly, Allied said in statement.
Mr Forrest's latest deal follows his appointment to the $2.2 million Siberia Mining gold float, and is based on his considerable money-raising abilities to develop Mt Nicholas.
A new board of directors including ``industry leaders from mining, industry and banking" as well as a new executive team ``reporting to Mr Forrest" would be established, Allied said.
Mr Forrest also aims to provide ``the required rail and port infrastructure facilities in co-operation with the Hope Downs operating partners".
Hope Downs is South Africa's Kumba Resources and Gina Rinehart's $1.5 billion iron project, which recently failed in its attempt to gain access to BHP Billiton's existing railway.
For his troubles, Mr Forrest stands to receive five million shares and 55 million options depending on various conditions and share price hurdles. Allied shares, which were suspended during trading, closed at 14c.
© 2003 Sydney Morning Herald