PERTH (miningweekly.com) – Junior AuStar Gold has struck an agreement with Mining Lending to acquire all of the outstanding debt owned by Centennial Mining and Maldon Resources, subject to a deed of company arrangements.
On completion of the agreement AuStar will replace Mining Lending as a major secured creditor for the two companies, with securities over assets owned by both the juniors.
AuStar last year entered into a deed of company arrangements to acquire Centennial Mining, which owns the A1 Gold mine, in Victoria, with the aim of consolidating its landholding in the region.
AuStar on Monday said that the company would continue to work with the deed administrators and the creditors of Centennial to complete the proposed acquisition.
In the meantime, AuStar has taken the decision to withdraw an entitlement offer to eligible shareholders, launched in December last year with the aim of raising A$5-million.