PERTH (miningweekly.com) – Gold miner Northern Star Minerals has made a A$150-million offer to acquire the remaining 49% stake in the East Kundana joint venture (JV), in Western Australia.
The 49% JV interest is jointly held by ASX-listed Tribune Resources and Rand Exploration, which have both faced a declaration of unacceptable circumstances from the Takeovers Panel in connection with past and ongoing breaches of the Corporations Act, with respect to nondisclosure of controlling shareholdings.
Northern Star, which holds an interest in both companies, said on Tuesday that in light of the panel’s declaration, the company believed that the A$150-million offer for the Kundana JV interest was a fair and sensible outcome for the shareholders of Tribune and Rand.
“The A$150-million price offers compelling, up-front value to Tribune and Rand. The cash offer to acquire the asset is a direct and clear means for Tribune and Rand shareholders to unlock the value of their company’s interest,” said Northern Star executive chairperson Bill Beament.
“This combination of factors makes our offers a fair and simpler and more transparent opportunity for Tribune and Rand shareholders than alternative pathways.”
Northern Star is planning on acquiring Tribune’s 36.75% interest in the JV for A$112.5-million, and Rand’s 12.25% interest for A$37.5-million in cash.
The completion of each asset purchase will be subject to shareholder approval, as well as Ministerial approval. The offers are not inter-conditional.
Northern Star told shareholders that the company was fully financed to proceed with one or both of the transactions, subject to the satisfaction of the condition, with the completion of the transaction targeted for the end of January 2019.