PERTH (miningweekly.com) – An independent expert has concluded that the proposed merger between juniors Excelsior Gold and Spitfire Materials is in the best interest of Excelsior shareholders.
The merger will be implemented through a scheme of arrangement, with Spitfire to acquire all of the issued capital of Excelsior by issuing one new Spitfire share for every 2.208 Excelsior shares held. The transaction valued Excelsior shares at 4.43c a share based on the 30-day volume-weighted average price of Spitfire shares.
Following the merger, Spitfire shareholders will hold a 58.3% share of the merged entity, with Excelsior shareholders holding the remainder.
A scheme booklet has now been registered with the Australian Securities and Investment Commission, and will be dispatched to shareholders. A scheme meeting is scheduled for September 19.
“We are looking forward to completing this game-changing transaction, which will result in the creation of a diversified Australian gold developer with an exciting growth future,” said Spitfire MD John Young.
“Having met with a number of Excelsior shareholders and investors in recent weeks, I am encouraged by the strong support for this transaction, and look forward to continuing to work closely with the Excelsior team to deliver the foundations of what we believe will be a significant new midtier Australian gold producer.”
The merged entity will have a combined indicated and inferred mineral resource of more than 2.1-million ounces, providing it with the critical mass to accelerate development plans to become a midtier gold producer. The two companies were planning an immediate prefeasibility study on the combined Aphrodite and Kalgoorlie North gold projects, following the merger.