Securities Issues that Cross the Border the View From Australia

This paper canvasses some of the principal issues arising under Australian law and practice in the context of (i) capital raising in the Australian securities markets by U.S. or other foreign corporations, and (ii) acquisitions by a U.S. or other foreign corporation of Australian publicly owned companies.

The current level of interest and activity in gold exploration and mining around the world may give these questions special relevance to those concerned with financing or acquiring gold mining operations.

The Australian situation may also be of particular interest for a number of reasons. Gold mining has become a major resource activity in Australia, supported by special income tax exemptions. Australian companies have been particularly active in gold exploration in Asia (especially Indonesia and the Philippines), as well as in the Americas. Gold floats were a familiar feature of the Australian securities markets during the two years or so before October 1987; and there are signs of renewed interest by Australian and internationally based companies in seeking access to the Australian public securities market, either separately or as part of an international offering in a number of countries. There may be additional reason to approach the Australian capital market where some of the properties are located in Asia, because of proximity and relative familiarity t