- Gold explorer Alt Resources (ARS) is the subject of an Aurenne Group off-market takeover bid today
- Aurenne has offered Alt 5.05 cents per share to take full control of the company
- Alt said the offer is compelling, but has told shareholders to take no action just yet
- The money received from the Aurenne bid would mean Alt can meet vendor payment deadlines and fund exploration without diluting shareholders
- In the meantime, Aurenne is lending the company over $3.5 million to fund operating activities
- Alt Resources shares gained almost 45 per cent today, closing worth 4.2 cents each
Junior gold explorer Alt Resources (ARS) has received a takeover bid from private investment company Aurenne Group (AGH) this week.
Aurenne has offered to take full control of Alt Resources for 5.05 cents per share. With 607.4 million ARS shares currently on offer, the initial bid values Alt Resources at $30.6 million.
However, under the conditions of the off-market offer, Aurenne will also be issued 29.1 million ARS shares as part of performance incentives for Directors and management staff.
As it stands, Alt Resources has told shareholders to take no action over the bid. Nevertheless, Alt said its Board is supportive of the all-cash offer and is reviewing the details of Aurenne’s bid.
Necessary funding
Alt Resources told shareholders it has already been considering funding options to pay off its Creek Gold Project mining leases.
The company owes $5 million to its vendors, with $500,000 of that due at the start of July 2020. The remaining $4.5 million is due at the end of November.
Importantly, Alt Resources said the cash received under today’s offer would completely mitigate the need for more shareholder dilution to meet vendor payment deadlines and fund exploration work.
In the meantime, Aurenne has agreed to lend Alt $3.68 million so the company can meet its July payment deadline and finish a pre-feasibility study at its Mt Ida and Bottle Creek projects.
Alt Resources Chairman William Ellis said the company is fully committed to acting in the best interest of shareholders.
“The Board considers the AGH offer to be compelling and is a strong endorsement in the company and its Mt Ida and Bottle Creek Gold Project assets,” William said.
Shares in Alt Resources soared following today’s news, closing 44.83 per cent higher at 4.2 cents each.