Ridge Mining has confirmed that the company is set to accept the merger proposed by Aquarius Platinum.

Aquarius revealed on Friday (19th June) that it had received irrevocable undertakings for its all-share deal, which is believed to represent 32.7 per cent of Ridge's issued share capital.

Responding to the news, Ridge Chairman Oliver Baring revealed that his firm is hoping to ensure that the details of the specified preconditions for the deal are finalised.

He said: "Following an approach from Aquarius regarding a proposed merger and after due consideration, we have agreed preliminary terms subject to several preconditions.

"We expect to satisfy these in the near future and will make further announcements when appropriate."

Mr Baring also highlighted the challenges that have faced Ridge in the past financial year amid the declining economic landscape and subsequent volatility in precious metals prices.

Against this uncertain backdrop, he explained that the Aquarius deal could provide the company with protection from some of the issues facing smaller mining firms.

"We consider that being part of a larger group would to some degree insulate our shareholders from the many problems facing smaller, and more particularly, single mine producers in the current economic climate," he added.

Mr Baring also noted that the company has still had some significant recent successes, such as the development of the Blue Ridge mine and the completion of the Sheba's Ridge bankable feasibility study.

Ridge Mining made a $27.1 million profit for the 2008 financial year, up from $17.7 million for the previous 12 months.

Source:

Chairman’s Statement (23/06/09)

Ÿ Adfero Ltd