September 08, 2008

Herald in talks with other parties after hostile bid from PT Bumi

Australian junior Herald Resources said it is now talking with other interested parties after receiving a hostile take-over offer from Indonesia’s Bumi Resources.

Herald said it has received approaches from a number of parties and is now holding discussions with those parties. In the interim, it advised its shareholders to do nothing in terms of Bumi’s AUD 2.25 per share offer.

Herald’s key asset is the Dairi zinc lead project in Indonesia. The project has been badly delayed by the process of acquiring a key forestry license from the Indonesian authorities. However, the resource is a high grade one and capable of supporting production of around 125,000 tonnes per year of contained zinc and 80,000 tonnes per year of contained lead.