Gold-focused Astral Resources has filed documents to merge with Maximus Resources courtesy of an all-scrip off-market offer.
Gold-focused Astral Resources has filed documents to merge with Maximus Resources courtesy of an all-scrip off-market offer.
Monday’s announcement follows on from news last December that Marc Ducler-led Astral had submitted a bid to acquire a 19.99 per cent stake in the junior.
Under the takeover offer, Astral told the market 1 new Astral share would be offered for every two Maximus shares, at an offer price of 7.3 cents per share – valuing Maximus at approximately $31 million.
Maximus’ board has unanimously voted in favour of its shareholders accepting the offer, in absence of a superior proposal.
“The combination with Maximus provides a compelling opportunity to generate value for both sets of shareholders by creating a company with increased size, scale and market relevance, all attributes which enhance re-rating potential,” Mr Ducler said.
“The merged entity will have combined and proximal mineral resources of approximately 1.8 million ounces of gold, regional gold targets underpinning significant exploration potential and the financial capacity to support accelerated progression.”
Both parties have also committed a series of undertakings in relation to the deal,
Astral, which has a market cap of $186.4 million, undertook multiple capital raises last year – of $7 million and $25 million – in order to accelerate exploration and evaluation activities at its Mandilla and Feysville gold projects, which are both located in the Goldfields.
In September following the $25 million raise, Astral said it was now fully-funded through to the finalisation of Mandilla’s definitive feasibility study.
As of 11.39am AWST, Astral shares were down 5 per cent to 14.3 cents, while Maximus was trading down 3 per cent to 6.3 cents.
