Brightstar makes Recommended Takeover Offer for Linden Gold

THE BOURSE WHISPERER: Brightstar Resources (ASX: BTR) approached Monday with a sunny disposition following the announcement of the impending acquisition of unlisted private company Linden Gold Alliance Limited.

Under the terms of the off-market scrip takeover offer, Linden securityholders are to receive 6.9 Brightstar shares for every one Linden share held and 6.9 Brightstar options for every one Linden option held, equating to an implied offer price of 11.04 cents per share.

Linden is a public unlisted Western Australian gold mining and exploration company, with operations located 220km northeast of Kalgoorlie and 109km south of Laverton.

The company holds a combination of gold producing and near-term producing assets which are nice and close to the processing facility owned by Brightstar in Laverton.

“This is an outstanding transaction for both Brightstar and Linden shareholders and aligns with our strategy of becoming a mid-tier gold producer in the near term,” Brightstar Resources managing director Alex Rovira said in the company’s ASX announcement.

“This combination will create a gold producer and development company with a material resource base, synergistic operations, strengthening in-house operational expertise and a strong balance sheet that will drive development and growth.

“We would like to thank the Linden Board and their major shareholders for their support and note the Board of Linden unanimously recommends this compelling offer in the absence of a superior proposal.”

Linden’s Directors have unanimously recommended shareholders accept the offer, in the absence of a superior proposal.

Major shareholder St Barbara Limited (ASX: SBM) has signed a pre-bid agreement with Brightstar to accept the offer in the absence of a superior proposal.

Brightstar sees the merger with Linden being aligned with its strategy to become a mid-tier gold producer from two of WA’s most prolific regions, Laverton and Menzies.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE