Intermet Resources
Overview
InterMet Resources Limited (ASX:ITT) is owned by Hillgrove Resources Limited. Hillgrove successively concluded the takeover of InterMet and its associates on the 30 August 2008, reaching an 84.8% relevant interest. With Hillgrove’s controlling interest it has no plans to acquire the remaining portion of the company, but this is reviewed regularly by the Board in terms of the best interests for Hillgrove shareholders.
InterMet History
In 2005 the South Australian Government released a large area of highly prospective tenements in the Gawler Craton with several key holdings acquired by a joint venture with Hillgrove. To facilitate future exploration a A$4 million capital raising was proposed late that year. Hillgrove listed their 30% owned subsidiary (down from 77%), InterMet Resources Limited on the Australian Stock Exchange (ASX) on the 20 April 2006. The initial public offering closed oversubscribed by approximately $2 million due to strong support from brokers and Hillgrove shareholders, under a priority shareholder allocation offer.
InterMet ran its highly prospective uranium, gold and base metals tenement portfolio under the watchful eye of an experienced Board for two years until 2008 when the global financial crisis arrived in earnest. Then Chairman, David Archer felt that remaining synergies between the companies provided a series of compelling benefits for their re-merging. Bringing together InterMet’s predominantly gold and iron ore exploration assets with Hillgrove’s copper/gold development, base metals/gold exploration and investment assets to create a more diverse resources group.
Since September 2008, considerable time has been spent reviewing the extensive InterMet portfolio with a view to reducing it to a manageable size and defining any key projects on which to focus exploration efforts. This work saw a large reduction in tenement holdings over several years, and primarily due to the size of the finds and location has now seen all tenements relinquished in South Australia and Queensland.
In June 2010 InterMet announced it planned to refocus its activities around bulk commodities – bauxite, coal and iron ore – both in Australia and Indonesia. Via Hillgrove, InterMet looked to acquire a 70% shareholding in five companies that owned nine exploration licenses (IUPs) over the Landak and Tayan South Bauxite Projects, covering 1,400km2 in West Kalimantan, Indonesia – a recognised bauxite province. Following extensive due diligence of the terms of the offer and the underlying tenements, on 24 February 2011 the Board of InterMet advised Hillgrove Resources Limited it would not be accepting the offer of assignment as it believed InterMet would be unable to meet the conditions requested by Hillgrove.
The InterMet Board remains committed to positioning the company to enable it to fund projects independently of Hillgrove Resources’ financial support. However, Hillgrove remains supportive in terms of continuing financial support until such time that InterMet has the ability to independently fund its activities.