Great Central Mines

Great Central Mines was an Australian gold-mining company active primarily in Western Australia. It operated as Great Central Mines NL before changing its legal name to Great Central Mines Limited on 19 December 1996, and traded on the Australian Securities Exchange under the code GCM. The company became associated with Rabbi Joseph Gutnick, who led the business during a period of rapid expansion in the Australian gold sector. The company’s growth was built around the discovery, acquisition and development of several important Western Australian gold assets. In 1988, a company associated with Gutnick discovered the deposit that later became the Plutonic Gold Mine. That asset was subsequently sold for A$50 million. Great Central Mines later acquired a majority interest in the Bronzewing deposit from prospector Mark Creasy. The transaction reportedly generated a payment of A$115 million to Creasy. In early 1995, Great Central Mines purchased the remaining 30 percent of Bronzewing that it did not already own, together with the remaining 49 percent of the Jundee Gold Mine. By the middle of the 1990s, Great Central Mines had become a substantial Australian mining company, with a reported value of approximately A$500 million in 1996. Its principal operating interests included the Bronzewing Gold Mine, the Jundee-Nimary operation and the Wiluna Gold Mine. Bronzewing was developed by the company during the early 1990s and was reported to produce roughly 250,000 to 300,000 ounces of gold annually. Jundee and nearby Nimary were developed during the mid-1990s and together produced approximately 300,000 ounces annually. Great Central Mines acquired Wiluna Mines Limited after a takeover process that began in August 1997 and concluded with the company obtaining the required level of acceptance in January 1998. Wiluna was reported to produce approximately 130,000 ounces of gold annually under Great Central Mines. The company’s expansion was accompanied by a complex corporate-finance structure and significant debt. In early 1999, Normandy Mining, acting through Yandal Gold, made a bid for Great Central Mines. The proposed takeover became the subject of proceedings initiated by the Australian Securities and Investments Commission. The Federal Court later found that the joint bidding arrangements involving Gutnick, Normandy chairman Robert Champion de Crespigny and Yandal Gold had been unlawful and deceptive. Gutnick was ordered to return $28.5 million to investors. Although the legal dispute continued for several years, the acquisition proceeded operationally and transferred Great Central Mines’ principal gold assets to Normandy. Great Central Mines was not immediately delisted because of the continuing legal proceedings. It acquired the Mt McClure Gold Mine near Bronzewing in September 1999 and integrated the operation into its business. On 5 April 2000, Gutnick, Champion de Crespigny and Ian Gould resigned as directors. The company changed its name to Normandy Yandal Operations Limited on 30 June 2000 and changed its ASX code to NYY. After Normandy Mining was acquired by Newmont Mining Corporation, the company was renamed Newmont Yandal Operations Limited in May 2002. The related court proceedings concluded in February 2003, and Newmont Yandal Operations was delisted from the ASX on 28 February 2003. Great Central Mines therefore survives primarily as a historical corporate identity associated with a major group of Western Australian gold assets and a landmark Australian takeover-law dispute.

Great Central Mines emerged during the expansion of Australia's gold-mining industry and became one of the better-known corporate participants in Western Australian gold exploration and production. The company was led by Rabbi Joseph Gutnick, whose mining activities followed advice attributed to the Rebbe Menachem Schneerson to return to the Australian desert in search of gold and diamonds. In 1988, a Gutnick-associated company discovered the deposit that later became the Plutonic Gold Mine. Great Central Mines subsequently sold that discovery for A$50 million. The company then concentrated on building a portfolio of operating and development assets. It acquired a majority interest in the Bronzewing deposit from prospector Mark Creasy. The payment associated with that transaction was reported as A$115 million, described as an exceptionally large payout to an individual prospector. In early 1995, Great Central Mines bought the remaining 30 percent of Bronzewing and the remaining 49 percent of the Jundee Gold Mine. The Jundee acquisition gave the company greater control over a growing production base in the Yandal region. Great Central Mines adopted the name Great Central Mines Limited on 19 December 1996, having previously operated as Great Central Mines NL. It was listed on the Australian Securities Exchange under the code GCM. The company had reportedly reached a value of about A$500 million by 1996, although its corporate structure was heavily debt-funded. Its operations included Bronzewing, Jundee-Nimary and, after the acquisition of Wiluna Mines, the Wiluna Gold Mine. Bronzewing was developed in the early 1990s and was reported to produce between about 250,000 and 300,000 ounces of gold a year. Jundee and Nimary together produced approximately 300,000 ounces annually, while Wiluna produced about 130,000 ounces annually under Great Central Mines. The acquisition of Wiluna followed two offers launched in 1997. The initial offer was announced on 21 August 1997 and closed on 10 October. A second offer continued until 2 January 1998, after which Great Central Mines obtained the necessary 90 percent acceptance and began compulsory acquisition on 5 January. This expanded the company’s operating portfolio but also increased the importance of its financing and corporate-control arrangements. In early 1999, Normandy Mining made a takeover offer through Yandal Gold, a company in which Normandy held a 49.9 percent interest. The Australian Securities and Investments Commission challenged the structure of the transaction and sought to terminate the offer. The Federal Court found that Gutnick and Normandy chairman Robert Champion de Crespigny had unlawfully and deceptively structured a joint bid valued at approximately $450 million. Both had pre-existing shareholdings in Great Central Mines and had agreed to establish Yandal Gold with Gutnick’s family company, Edensor Nominees. The court determined that Gutnick received the relevant benefit and ordered him to repay $28.5 million to investors. Despite the litigation, the takeover proceeded in practical terms. Bronzewing, Jundee and Wiluna passed into the Normandy group. Great Central Mines could not be delisted as originally planned on 22 June 1999 because the court proceedings were still active. During this period it acquired Mt McClure Gold Mine near Bronzewing in September 1999. On 5 April 2000, Gutnick, Champion de Crespigny and Ian Gould left the board. On 30 June 2000, the company became Normandy Yandal Operations Limited and adopted the ASX code NYY. Normandy Mining was later acquired by Newmont Mining Corporation. As a consequence, Normandy Yandal Operations was renamed Newmont Yandal Operations Limited on 24 May 2002. The takeover litigation finally ended on 28 February 2003. The final court outcome prevented former Great Central Mines shareholders from reacquiring their shares and removed the remaining legal rationale for maintaining the listed entity. Newmont Yandal Operations was delisted from the ASX on the same date. Great Central Mines is therefore a defunct corporate brand whose historical significance lies in its role in developing major Western Australian gold mines and in the legal controversy surrounding its takeover.

• 2003

  Court proceedings conclude and entity is delisted

  [3]Court proceedings conclude and entity is delistedasic.gov.au

  The takeover-related proceedings concluded on 28 February, when Newmont Yandal Operations was delisted from the ASX.

• 2002

  Renamed Newmont Yandal Operations

  [1]Great Central Minesen.wikipedia.org

  Following Newmont Mining Corporation’s acquisition of Normandy Mining, the company adopted the name Newmont Yandal Operations Limited on 24 May.

• 2000

  Renamed Normandy Yandal Operations

  [1]Great Central Minesen.wikipedia.org

  The company changed its name to Normandy Yandal Operations Limited and its ASX code to NYY on 30 June.

• 1999

  Normandy takeover and Mt McClure acquisition

  [1]Great Central Minesen.wikipedia.org

  Normandy Mining bid for Great Central Mines through Yandal Gold. Great Central Mines also acquired Mt McClure Gold Mine in September.

• 1998

  Wiluna acquisition advanced to compulsory acquisition

  [1]Great Central Minesen.wikipedia.org

  After a second offer, Great Central Mines reached the required 90 percent acceptance level and moved to compulsory acquisition on 5 January.

• 1997

  Wiluna takeover launched

  [1]Great Central Minesen.wikipedia.org

  Great Central Mines announced its first offer for Wiluna Mines Limited on 21 August.

• 1996

  Legal name and corporate scale change

  [1]Great Central Minesen.wikipedia.org

  The company became Great Central Mines Limited on 19 December and was reported to be worth approximately A$500 million during the year.

• 1995

  Remaining Bronzewing and Jundee interests acquired

  [1]Great Central Minesen.wikipedia.org

  Great Central Mines purchased the remaining 30 percent of Bronzewing and the remaining 49 percent of Jundee Gold Mine.

• 1988

  Plutonic deposit discovered

  [1]Great Central Minesen.wikipedia.org

  A company associated with Joseph Gutnick discovered the deposit that later became the Plutonic Gold Mine; the asset was subsequently sold for A$50 million.

A growth-oriented Australian gold producer and mining-investment company focused on discovering, acquiring and developing large Western Australian gold deposits.

• Gold mine

  Bronzewing Gold Mine

  Bronzewing was one of Great Central Mines’ core Western Australian assets. The company developed the operation during the early 1990s and progressively consolidated its ownership, buying the final 30 percent in early 1995. Reported annual production was approximately 250,000 to 300,000 ounces of gold. The mine later became part of the Normandy portfolio following the Great Central Mines takeover.

• Gold mine

  Jundee-Nimary Gold Mine

  The Jundee-Nimary operation combined Jundee with the nearby Nimary deposit. Great Central Mines acquired the remaining 49 percent of Jundee in early 1995 and developed the broader operation during the mid-1990s. The two deposits were reported to produce approximately 300,000 ounces annually, with about two-thirds attributed to Jundee and one-third to Nimary.

• Gold mine · 1998

  Wiluna Gold Mine

  Wiluna became part of Great Central Mines after the company’s successful takeover of Wiluna Mines Limited. The acquisition process began in 1997 and reached the compulsory-acquisition stage in January 1998. Under Great Central Mines, the operation was reported to produce approximately 130,000 ounces of gold annually.

• Gold mine · 1999

  Mt McClure Gold Mine

  Mt McClure was acquired by Great Central Mines in September 1999. Located near Bronzewing, it was integrated into the company while the takeover-related litigation remained unresolved. The asset subsequently formed part of the successor Normandy and Newmont corporate structures.

• Gold discovery · 1988

  Plutonic Gold Mine deposit

  The deposit that became the Plutonic Gold Mine was discovered in 1988 by a company associated with Joseph Gutnick. Great Central Mines’ historical connection is primarily through the discovery and subsequent sale of the asset, rather than long-term operation of the mine.

• 1999

  Unlawful and deceptive takeover structure

  The Australian Securities and Investments Commission challenged Normandy Mining’s takeover of Great Central Mines through Yandal Gold. The Federal Court found that the joint bidding arrangements involving Joseph Gutnick and Normandy chairman Robert Champion de Crespigny were unlawful and deceptive. Gutnick was ordered to return $28.5 million to investors.

  Source

Read more

• 2000

  Corporate renaming after takeoverStrategy

  Background

  The takeover had transferred Great Central Mines into Normandy Mining’s corporate structure.

  Action taken

  The company was renamed Normandy Yandal Operations Limited and its ASX code changed from GCM to NYY.

  Aftermath

  The Great Central Mines identity ceased to be the operating company’s principal name, and the business later became part of Newmont’s Yandal structure.

  Source

• 1999

  Normandy Mining takeoverM&A

  Background

  Normandy Mining pursued Great Central Mines through Yandal Gold, a jointly structured vehicle involving Normandy and interests associated with Joseph Gutnick.

  Action taken

  Normandy proceeded with the acquisition despite ASIC objections and subsequent court proceedings.

  Aftermath

  Great Central Mines’ principal assets entered the Normandy group, while the company remained listed for a period because of the unresolved litigation. The entity was eventually renamed and later delisted under the Newmont group.

  Value of joint bid. $450 million bid (1999)

  Source

• 1997

  Offer for Wiluna MinesM&A

  Background

  Great Central Mines sought to expand its producing-asset portfolio by acquiring Wiluna Mines Limited, owner of the Wiluna Gold Mine.

  Action taken

  It made an initial takeover offer in August 1997 and a second offer that remained open until January 1998.

  Aftermath

  The company obtained at least 90 percent acceptance and proceeded toward compulsory acquisition of Wiluna.

  Source

• 1995

  Consolidation of Bronzewing and Jundee ownershipM&A

  Background

  Great Central Mines already held majority interests in Bronzewing and Jundee and sought full or substantially full control of the assets.

  Action taken

  The company bought the remaining 30 percent of Bronzewing and the remaining 49 percent of Jundee.

  Aftermath

  The transactions strengthened Great Central Mines’ control over two of its principal Western Australian gold operations.

  Source

1. 1Great Central Minesen.wikipedia.org
2. 2ASIC: Yandal — $33 million payout for former Great Central Mines shareholdersasic.gov.au
3. 3Court proceedings conclude and entity is delistedasic.gov.au