PERTH (miningweekly.com) – Junior AuStar Gold has paused its takeover plans for embattled Centennial Mining, following discussions with that company’s administrators.
AuStar in May revealed its intentions to make a takeover offer for Centennial, which holds the A1 gold mine, after Centennial’s administrators revealed that they had received a number of unsolicited approaches from existing creditors.
AuStar owns the Rose of Denmark and Morning Star mines as well as having exploration assets around Centennial’s A1 mine, and has previously spouted the virtues of consolidation in the region.
However, the junior miner on Friday said that after conducting due diligence investigations, the board of AuStar had determined, based on the current available information, not to submit a deed of company arrangement to Centennial’s creditors prior to the creditor meeting, which is scheduled for May 17.