07/05/2020 - 13:59

Aurenne signals fourth WA acquisition

07/05/2020 - 13:59

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UPDATED: Private equity player Aurenne Group has made a $32 million all-cash takeover offer for ASX-listed Alt Resources, which is developing the Bottle Creek gold mine in Western Australia.

Aurenne signals fourth WA acquisition
Alt Resources is developing the Bottle Creek gold mine in Western Australia's Goldfields. Photo: Alt Resources

UPDATED: Private equity player Aurenne Group has made a $32 million all-cash takeover offer for ASX-listed Alt Resources, which is developing the Bottle Creek gold mine in Western Australia.

This signals the fourth acquisition in Western Australia in three years by the Sydney-based firm.

Its first move was the purchase of a 50 per cent stake in the Kalpini gold project, owned by Kalgoorlie-based KalNorth, for $3.2 million in 2017.

That was followed in 2018 by the $5 million purchase of Gondwana Resources' Parker Range gold tenements in the Yilgarn while last year it purchased the Australian exploration assets (including the Bulong South project) of South Australian company Southern Gold for $2.5 million.

Led by chief executive Carl Rose and chief financial officer Ravi Underwood, privately-held Aurenne has offered to purchase Alt Resources, also based in NSW, for 5.05 cents per Alt share.

The offer values the company at more than $32 million.

Alt Resources shares surged 45 per cent on the news to trade at 4.2 cents at 3:00pm AEST.

Alt said it had been considering funding options to complete the purchase of the Bottle Creek Gold project mining leases, with a partial payment of $500,000 due on July 1 and a final $4.5 million instalment due on November 30.

Alt Resources chairman William Ellis said the offer from Aurenne was a strong endorsement of the company’s assets.

Its directors support the takeover but have advised shareholders take no action while they consider the details and conditions of the offer.

The company has appointed Hartleys as financial adviser and Steinepreis Paganin as legal adviser.

In the interim, Aurenne has agreed to lend Alt Resources $3.8 million through a convertible note, which Alt said would provide it with enough funding to meet its obligations and deliver pre-feasibility studies for Bottle Creek, as well as the Mt Ida project in Queensland.

 

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