20/02/2019 - 10:18

AIC and Intrepid strike new merger deal

20/02/2019 - 10:18

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Intrepid Mines and AIC Resources have agreed to a revised merger deal, less than three weeks after Intrepid’s initial attempt to acquire the Subico-based gold junior lapsed.

AIC and Intrepid strike new merger deal
AIC Resources is a junior gold explorer.

Intrepid Mines and AIC Resources have agreed to a revised merger deal, less than three weeks after Intrepid’s initial attempt to acquire the Subiaco-based gold junior lapsed.

Under the revised reverse takeover offer, Intrepid will offer one of its shares for every two AIC shares held.

Intrepid’s initial offer, which it announced in September and lapsed earlier this month, was one Intrepid share for every three AIC shares.

The previous offer lapsed after Intrepid failed to achieve the 90 per cent minimum acceptance threshold.

Existing AIC shareholders will own approximately 73 per cent of the new entity, and Intrepid shareholders will own the remainder.

Intrepid’s market capitalisation is around $5 million, while AIC’s is $12.75 million.

AIC managing director Aaron Colleran will lead the merged entity. Mr Colleran was appointed managing director of AIC last week.

AIC chair Josef El-Raghy will retain his role in the new entity, Intrepid chairman Richard Baumfield will become a non-executive director, and Intrepid non-executive director Tony Wolfe will assume the same position.

In a joint statement to the ASX, the companies said the rationale behind the merger would be to have a substantial gold and copper land holding, with a strong balance sheet.

They said the merged entity would also have a more experienced board and achieve cost savings, which in September it estimated to be around $500,000 per annum.

Mr El-Raghy said he was pleased the companies were able to successfully renegotiate.

“This merger creates a strong platform for growth and delivers a dominant land position in the underexplored Plutonic and Marymia region,” he said.

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