Brightstar Resources (ASX:BTR) has closed its off-market takeover bid for Linden Gold Alliance, acquiring 96.75% of Linden’s shares and 96.81% of Linden’s options.
On 29 April 2024, Brightstar, which has a market capitalisation of $48.41 million, made an off-market takeover bid for all of Linden Gold’s shares. The offer opened that same day.
The takeover offer was subject to several conditions, including a 90% minimum acceptance condition to ensure the merger will proceed if Brightstar becomes entitled to acquire all of Linden’s securities.
All of the conditions were satisfied during the offer period and the contracts resulting from acceptance were declared unconditional by notice given on 22 May 2024.
The company will issue the share and option offers consideration for the accepted Linden shares and options no later than 20 June 2024.
Under the takeover bid, Linden shareholders and option holders will receive 6.9 Brightstar shares and options for each Linden share and option already held.
The offers represent an implied price of $0.1104 per share, with an implied undiluted equity value for Linden of $23.7 million.
Following the takeover of Linden, Brightstar will look to boost gold production via an increased resource base of 1.45 million ounces, supported by a balance sheet of $22 million in cash and no debt.
In connection with the transaction, Brightstar has also appointed Andrew Rich as executive Director, as well as Ashley Fraser and Richard Crookes as non-executive Directors.
Existing board members Gregory Bittar and Joshua Hunt have resigned as non-executive Chairman and non-executive Director, respectively.
In separate news today, Brightstar has received the remaining assay results from a reverse circulation drilling program at the Link Zone deposit.
The results have confirmed mineralisation within and outside the optimised pit shells at shallow depths, with hole LZRC24029 intersecting 9m @ 4.4 grams per tonne (g/t) gold from 18m, including 1m @ 29.1g/t gold from 18m.
Managing Director Alex Rovira says with all assays now received, data can be incorporated into updates to the geological interpretation and mineral resource.
“With the reverse circulation drill rig relocated to Second Fortune, the focus at Menzies can now switch to the technical studies required to assess and advance a potential small-scale mining campaign at Link Zone, with JT Metallurgical Services and Operational Geotechs engaged based upon their previous work completed at the Selkirk Mining Joint Venture,” he says.
“These studies will include geotechnical and metallurgical data, provided by the diamond drilling scheduled to begin in the coming days, with this information to feed into re-optimised pit shells.”
The company expects to announce further drilling progress, including assays and geological interpretations, once completed.
Write to Aaliyah Rogan at Mining.com.au
Images: Brightstar Resources
