Astral Resources (ASX:AAR) has entered into a bid implementation deed to takeover Maximus Resources (ASX:MXR) in a recommended all-scrip off-market transaction.
Astral has appointed Taylor Collison as its financial advisor and Thomson Geer as legal advisor. Maximus has appointed EMK Lawyers as its legal advisor.
Once complete, the deal is expected to give Astral a market capitalisation of around $200 million and a 1.8 million ounce combined gold mineral resource.
Under the offer, Maximus shareholders will receive one Astral share for every two shares held, implying a price of $0.073 per Maximus share based on Astral’s five-day volume weighted average price up to and including 31 January 2025.
The implied offer price represents a 61% premium to Maximus’ last closing price of $0.045 on 24 December 2024.
Astral Managing Director Marc Ducler says the tie-up with Maximus provides an opportunity to generate value by creating a company with increased size, scale, and market relevance, all attributes which enhance re-rating potential.
“The merged equity will have combined mineral resources of approximately 1.8 million ounces of gold, regional gold targets underpinning significant exploration potential and the financial capacity to support accelerated progression,” Ducler says.
Maxius Managing Director Tim Wither says by accepting the offer, Maximus shareholders will have a material interest in the upside potential associated with the combined portfolio.
“Maximus’ board believes that this transaction is in the best interest of Maximus to unlock the value from the company’s Spargoville tenements and unanimously recommends it to shareholders, in the absence of a superior proposal,” he says.
Maximus Resources is an explorer and developer focused on its assets in the Eastern Goldfields region of Western Australia. The company’s projects are considered prospective for gold, lithium, and nickel.
Astral Resources is a Perth-based gold and base metals explorer with assets in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Astral Resources
