INDEPENDENT NEWS

Otter Gold Directors Respond to Offer

Published: Mon 24 Jan 2000 07:01 PM
REL: 1716 HRS Otter Gold Mines Limited
NRT: OTR: DIRECTORS RESPONSE MID EAST MINERALS OFFER
Otter Gold has provided a directors response to the NRT received from Mid East Minerals (MEM). Otter believes that there is no relevant information pertaining to Otter likely to be available to MEM which has not otherwise been made available to the market.
Whilst directors believe that all relevant information has been disclosed to the market, directors believe that the market has failed to appreciate the significance of the following matters:
The market value of Otter's investment in Allstate Explorations being NZ$35.8m at current market trading on the ASX - which equates to NZ$0.77 nett issued Otter share (ignoring Allstate control premium) - should now be reflected in Otter's share price.
The board has been investigating strategies that will lead to the share price of Otter being closer to the value of its underlying assets, including a possible sale of Allstate assets.
In the absence of a successful appeal by MEM of the Australian Administrative Tribunal's decision to require MEM to comply with existing Australian law, MEM will not be able to proceed to acquire further shares in Otter without making a cash offer for all the shares in Allstate.
Directors advise that, in their opinion, an appropriate value of Otter shares is not less than $1.46 per share.

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