PERTH (miningweekly.com) – The shareholders of TSX-V-listed Superior Gold Inc have backed a takeover offer by ASX-listed Catalyst Metals.

Catalyst earlier this year unveiled a Canadian Plan of Arrangement for the TSX-V-listed Superior Gold, under which each Superior shareholder will receive 1 Catalyst share for every 2.8 Superior shares held.

The offer implies a value of C$0.44 a share to Superior shares and values the company at C$55-million. The offer represents a 62.8% premium to Superior’s last closing price on February 22 and a 64.4% premium to its 15-day volume weighted average share price.

Some 93% of Superior’s shareholders voted in favour of the offer.

“The overwhelming shareholder support, and high participation rate, solidifies our view that the arrangement is in the best interest of the Shareholders and that the combined company will be well positioned to create meaningful value for all of its shareholders through the consolidation of the Plutonic-Marymia gold belt. We look forward to the future of the combined company,” said Superior CEO and president Chris Jordaan.

Catalyst MD James Champion de Crespigny said on Tuesday that the company was pleased with the shareholder vote.

“It is clear that shareholders see value in, and understand, the industrial logic of this consolidation. Consolidating the Plutonic-Marymia gold belt is a transformational transaction for Catalyst and Superior shareholders. Whilst this is a moment to reflect on what has been achieved, we are excited to now execute on the plan we have been developing.”

The transaction will give Catalyst access to the Plutonic gold mine, in Western Australia, which hosts a 5.9-million-ounce resource, a three-million-tonne-a-year processing capacity, and a yearly production of 70 000 oz of gold.

Catalyst has previously said that the Superior Gold transaction, in conjunction with its successful acquisition of ASX-listed Vango Mining, provided a compelling opportunity to unlock and maximise value from the Plutonic-Marymia gold belt, and to support the growth of a new high-grade midtier gold mining company on the ASX.