Alara announces new MD, flags merger

Saudi Arabia and Oman-focused copper-gold explorer Alara Resources has flagged the possibility of a scrip merger with an unnamed party, while also announcing the appointment of a new managing director.

In a statement accompanying a response to price query on the ASX, Alara said it had entered into a mutual confidentiality and exclusivity deed with an unnamed party, with both undertaking due diligence on a transaction which relates to a scrip merger.

“The company advises that no merger agreement has been reached between the parties,” Alara said.

“There is no assurance that a final agreement will be reached.”

Meanwhile, Justin Richard has been appointed to the role of managing director of Alara, following the resignation of Philip Hopkins last month.

Mr Richard has been the company’s legal and commercial manager since 2011 and its county manager in Saudi Arabia and Oman since 2012 and 2013 respectively.

“Alara’s discussions about this potential corporate transaction enable the company to explore the best and most practical means for Alara to advance its joint venture projects in the Middle East,” Mr Richard said.

Non-executive director John Hopkins also announced his retirement today.

Alara shares were volatile today, trading 10 per cent lower this morning to 10 per cent above its opening price around midday.

At 1:30pm, Alara shares were flat at 1 cent each.