The Australian Securities Exchange (ASX) was rather quiet to round out last week, with limited news from resources companies, although some large announcements came out in the mergers and acquisitions (M&A) space.
CZR Resources (ASX:CZR) and Zuleika Gold (ASX:ZAG) announced a bid implementation deed on Friday 26 June for a recommended all-scrip, off-market takeover offer.
Under the deal, CZR Resources will acquire all issued shares of Zuleika, with 0.1742 CZR Resources shares offered for every one Zuleika share held.
This offer implies a price of $0.0427 per Zuleika share, valuing Zuleika at $44.8 million.
The implied offer price represents a 42.3% premium to Zuleika’s last closing price of $0.030 on 25 June, as well as a 32.9% premium to the company’s 30-day volume weighted average price.
“The proposed acquisition of Zuleika and its highly complementary suite of assets represents a step change in the growth trajectory of CZR, and the strengthened balance sheet of the combined entities provides an excellent platform for further growth,” CZR Resources’ board says.
“Access to the highly-prospective Zuleika Shear assets will augment CZR’s exciting exploration portfolio including the advanced Croydon Gold Project.”
Bright Sunrise
Platina Resources (ASX:PGM) completed the acquisition of the Sunrise Bore Project in the Mt Morgans gold district near Laverton in Western Australia last Friday, secured through the purchase of privately held Bravo Minerals.
The consideration included $350,000 in cash, the issuance of 40.63 million in shares, and a 1% net smelter return royalty.
Platina began a drilling campaign at the project on Friday, testing a section of the 1.2km historically identified mineralised trend in the 3.6km structural corridor.
Drilling is expected to take 14 days to complete and follows on from Platina conducting a technical review and securing cultural heritage clearances.
The company will cover 23 holes for around 2,775m in reverse circulation drilling.
CEO Corey Nolan says the project has the potential to be advanced to a resource estimate through a systematic drilling campaign.
“With no modern exploration undertaken at Sunrise Bore since 1998, we believe there is a significant opportunity to unlock value at the project,” Nolan says.
“The combination of historical mineralisation, limited recent exploration, and proximity to infrastructure and multiple processing facilities makes Sunrise Bore a compelling addition to our Laverton exploration portfolio.”
Star shining
Finally, Star Minerals (ASX:SMS) was granted exploration licence E70/6810 on Friday, forming the foundation of its new Merredin Project, spanning 219km2 in Western Australia.
The company has also lodged a further exploration licence application E70/6831, extending the project area along its northern margin.
The Merredin Project is interpreted to be prospective for gold mineralisation and also has potential for iron ore and base metal mineralisation.
Managing Director Ashley Jones says the company is pleased to have secured this new project, with mining ongoing at the Tumblegum South Gold Project and due diligence continuing on numerous project opportunities.
“Our initial review of the geology and geophysics has identified several encouraging features that support the project’s potential and provide a strong basis for future exploration,” Jones says.
“Importantly, the project was secured through low-cost tenure applications and complements our broader strategy of building a pipeline of exploration, development, and acquisition opportunities capable of creating long-term shareholder value.”
The company will now focus on securing land access and stakeholder agreement for Merredin, as well as completing a review and integration of historical exploration data.
From there, Star Minerals will generate exploration targets through geological and geophysical interpretation before undertaking reconnaissance and remote sensing programs.
Write to Maddison Elliott at Mining.com.au
Images: CZR Resources
