Brightstar Resources is looking to acquire Linden Gold Alliance, offering $23.7 million for the gold producer, developer and explorer.
The offer, which has been unanimously recommended, would see Linden security holders receive 6.9 Brightstar shares for ever one Linden share.
Both Linden directors and major shareholders, including St Barbara, have signed intention statements to accept the offer.
“This is an outstanding transaction for both Brightstar and Linden shareholders and aligns with our strategy of
becoming a mid-tier gold producer in the near term,” Brightstar managing director Alex Rovira said.
“This combination will create a gold producer and development company with a material resource base, synergistic operations, strengthening in-house operational expertise and a strong balance sheet that will drive development and growth.
“We would like to thank the Linden board and their major shareholders for their support and note the board of
Linden unanimously recommends this compelling offer in the absence of a superior proposal.”
Linden has existing mineral resources of 350,000 ounces near Brightstar’s tenements in the Laverton district of Western Australia.
“On behalf of the Linden board, we are excited to present Linden shareholders with this compelling offer,” Linden managing director Andrew Rich said.
“Brightstar’s team and assets are highly complementary to Linden’s, and we believe the combination will unlock material synergies to the benefit of all shareholders.
“The offer provides Linden shareholders with a range of benefits, including exposure to a liquid, growing ASX listed gold producer, a strengthened balance sheet and the ability to utilise Brightstar’s existing infrastructure and resource base.
“The board of Linden unanimously recommends the offer and encourages all shareholders to accept the offer in the absence of a superior proposal.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
