Tolokuma mine owners says people can’t complain about sale

The Tolokuma mine, sold by the government for K80 million in November 2015, is now being traded for K670 million…

The operator of the Tolokuma mine, Asidokona Mining Resources has defended its takeover by a Singapore nightclub operator and says people should stop complaining [see story below].

Asidokona, owned by Singapore speculator Philip Soh Sai Kiang, says Petromin was fully informed the company would be listed on the stock exchange when it sold the mine in 2015 and the listing “was part of the conditions stated in the sale and purchase agreement”.

Asidokona says other parties have also been kept fully informed of the listing and shouldn’t now complain:

“Since we took ownership of TGM, we have in our meetings with the various stakeholders, including Yulai landowners, Central provincial government, MRA, local member Willie Samb and other state agencies, on numerous occasion, apprised them of the probable listing of TGM. So no one party who dealt with us can feign ignorance that they did not know that TGM will be listed”.

Of course, once a company is publicly listed on a stock exchange its shares can be bought by anyone and any other company can make a takeover by buying a majority or all of the shares.

Seems the people to blame here, for Tolokuma ending up with a nightclub owner, are Brown Bai and the rest of the Petromin Board and Mining Minister Julius Chan. They should never have sold Tolokuma to a Singaporean financial speculator in the first place!

They also need to explain how they sold the mine for K80 million but eight months later it is changing hands again for K670 million!

Shirley Mauludu | The National aka The Loggers Times | July 14, 2016
OPERATOR of Tolukuma gold mine in Central, Asidokona Mining Resources, says it is working on raising the standard of the mine.
It was responding to reports that the mine had been been bought by the LifeBrandz Group, a Singapore-based nightclub and lifestyle company.
Asidokona director Vincent Siow told The National yesterday that the company was working on raising the standard of the mine.
“When the then Petromin selected us in their tender exercise to sell Tolukuma Gold Mines, we intimated then that we will list TGM on a recognised stock exchange,” Siow said. “This was part of the conditions stated in the sale and purchase agreement we entered into subsequently with Petromin.
“This listing either by way of an outright initial public offer or reverse takeover is to crystallise by end of December 2016 or a mutually agreed date. 
“Because of the stringent requirements of the stock exchanges especially on the governance aspects, we have been very careful in our dealings with all the stakeholders and we took all measures necessary to ensure that nothing untoward will jeopardise the listing of TGM.
“Hence we rebutted where there are inaccurate account of any of our dealings or any matters about Tolukuma Gold Mines and its operations.
“Since we took ownership of TGM, we have in our meetings with the various stakeholders, including Yulai landowners, Central provincial government, MRA, local member Willie Samb and other state agencies, on numerous occasion, apprised them of the probable listing of TGM.
“So no one party who dealt with us can feign ignorance that they did not know that TGM will be listed.
“We reviewed our options and decided the RTO route to list TGM.
“It so happen that the listed company we selected formerly conducted its businesses principally in the entertainment and recreation sector.
“The company had fallen on difficult times and is wanting of a lifeline and new business.
“As you know in RTO we take over the company and will run TGM as a listed company through this vehicle. 
“Please bear in mind that the RTO has conditions in itself, especially the governance and compliance aspects of the statutes of both the Republic of Singapore as well as the State of Papua New Guinea.
“TGM will have foreign sources of finance and Papua New Guinea has indirect foreign sourced investment. 
“A goldmine in Papua New Guinea has been monetised. 
Yulai Landowners Association and Central Provincial Government are shareholders of Asidokona Mining Resources Pte Ltd and were given free carry shares as part of the SPA. 
“They will own shares, even though their stake will be diluted because of the RTO, can easily realised its market values if they so choose to dispose of their shareholdings.When the RTO is completed it signifies the commitment and reinforce the fact that Asidokona is in PNG for the long haul.” 

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Filed under Financial returns, Papua New Guinea

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