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- Mining companies AuStar Gold (AUL) and White Rock Minerals (WRM) have entered into a binding Merger Implementation Deed (MID)
- Through a scheme of arrangement, White Rock will acquire all issued share capital in AuStar Gold
- Amid this significant transitional period, Philip Amery has resigned from his position as AuStar Gold’s Chairman
- AuStar Gold is up 25.42 per cent and trading at 37 cents per share
- White Rock Minerals is down 3.48 per cent and trading at 56 cents per share
Mining companies AuStar Gold (AUL) and White Rock Minerals (WRM) have entered into a binding Merger Implementation Deed (MID).
The MID has proposed an all-share transaction in which White Rock would acquire 100 per cent of issued share capital in AuStar Gold. Under the proposed scheme of arrangement, shareholders in AuStar Gold will receive 0.78 White Rock shares for every AuStar share they hold.
The board of directors at AuStar has unanimously recommended the company’s shareholders vote in favour of the scheme. However, this is dependent on the absence of a superior proposal, and subject to an independent expert’s report confirming that the scheme is in the best interests of AuStar shareholders.
If the transaction goes ahead, the resulting entity of the merger will go forward under the name White Rock Minerals.
Director of AuStar Gold, Paul McNally, commented on the company’s impending acquisition by White Rock.
“I am extremely pleased to be announcing this transaction, which delivers for AuStar Gold shareholders a certain path forward to accelerated activity on the company’s world-class Victorian gold tenements, as well as the benefit of exposure to White Rock’s high-potential exploration and development assets in Alaska and New South Wales,” he said.
“I am particularly pleased to be able to continue my active involvement with the enlarged company, and to again be working with my former colleague Matt Gill, who I am sure will provide effective and dynamic leadership of a company with a hugely compelling suite of assets and opportunities,” he added.
In related news, AuStar Gold’s Chairman, Philip Amery, has tendered his resignation with the company. In an announcement to the market, Philip explained that he believes now to be the right time for this change as the company comes to an important juncture.
Philip will hand his duties as Chairman over to Director Paul McNally, who has been elected to fill the role.
AuStar Gold is up 25.42 per cent, trading at $0.37 per share. Meanwhile, White Rock Minerals is down 3.48 per cent, trading at 56 cents per share at 10:51 am AEDT.
