Uncategorised

Miners turn attention to chocolate making

Some prominent mining executives have embarked on a new acquisition. But it’s not for a new mining operation, but rather the chocolate brand Yowie.

Perhaps in a bid to provide mining workers a burst of energy while doing one of the more laborious jobs available in Australia, the Perth Mining executives have irged investors to back their intended acquisition of Yowie.

Waratah Resources’ William Witham and former non-executive director of Gleneagle Gold, Greg O’Reilly, are both directors of GFS Corporation, which has released a prospectus to raise up to $4 million as part of its acquisition plans for the chocolate maker, according to The West.

GSF said in a deal announced in July that it would acquire Yowie Enterprises from the current private owners in return for shares.

But since the deal was dependant on GSF raising at least $2 million through a public share issue, the directors are calling on the shareholders to back their plans.

The Yowie treats comprised of hollow chocolate, in the shape of a Yowie, characters loosely related to mythical Australian creatures.

Cadbury was championing its environmental and sustainability cause with the brand, as each Yowie character in the range had a unique personality and primary environmental concern.

Rumble the Redgum Yowie guarded the plains and deserts, Ditty the Lillipilli Yowie looks after the flowers, Nap the Honeygum Yowie was concerned with trees, Squish the Fiddlewood Yowie keeps the rivers clean, Boof the Bottlebrush Yowie loved the bugs and butterflies, and Crag the Mangrove Yowie watched over the wetlands.

It’s unclear if CSF’s intended acquisition is based on Yowie’s environmental awareness and edication.

Each Yowie had a toy inside, similar to the long-standing Kinder Surprise option.

Cadbury produced the Yowie chocolates in the late 1990’s, but ceased in early 2000’s after a court battle which saw the a Canberra naturalist who refers to himself as 'Tim the Yowie Man' awarded the right to keep his name, after Cadbury Schweppes lost a legal challenge at the Australian Trademarks Tribunal.

GSF chairman O'Reilly that while he never expected to get into the chocolate business, the offer is too good to pass up.

"It's something that doesn't come around too often – a product that's really well known that we can bring it back into the marketplace," he said.

GSF is offering 10 million shares at 20 cents with the option for oversubscriptions of a further 10 million units under the prospectus.

GSF shares are currently in suspension, having last traded at 0.1 cents.

If the acquisition bid is successful, as part of the restructure, and prior to the equity raising, GSF's shares will be consolidated on a 150-to-one basis.

What do you think of the mining executives chocolate plans?

Send this to a friend