- AuStar Gold (AUL) has entered into an agreement to acquire all debt from two other companies, including Centennial Mining
- This follows the company’s proposed acquisition of Centennial three weeks ago
- AuStar will acquire the debt from Mining Lending, for both Centennial and Maldon Resources
- The company says because of uncertainty around the acquisition of Centennial, it will withdraw an entitlement offer to raise revenue
- AuStar is down 13.3 per cent today, trading at 26 cents per share
AuStar Gold (AUL) has entered into an assignment agreement to acquire all debt owed by two mining companies.
Centennial Mining and Maldon Resources had debt owed to Mining Lending.
That debt will now be acquired by AuStar, as well as the associated security documents and interests.
This follows the proposed acquisition of Centennial nearly 3 weeks ago.
AuStar say they will continue to work with the Deed Administrators and the creditors of Centennial to complete the proposed acquisition.
AuStar also says because of the change in circumstances, as well as the uncertainty relating to the acquisition of Centennial, it intends on withdrawing the Entitlement Offer to eligible shareholders.
The Entitlement Offer was for one new share for every two new shares, held by eligible shareholders at the offer price of 30 cents per share.
The offer was intended to raise up to approximately $5,085,545 to help contribute to among other things, the consideration for the acquisition of Centennial.
The offer was made under a prospectus lodged with the Australian Securities and Investments Commission (ASIC) on December 12, 2019.
The company says it’s in the process of preparing a supplementary prospectus to effect withdrawal of the Entitlement Offer, which will be lodged with ASIC and the ASX.
AuStar is down 13.3 per cent today trading at 26 cents each at 13:35 pm AEDT.