Brightstar Resources has offered to acquire all issued ordinary shares and options in Linden Gold Alliance through an off-market scrip takeover offer.
This strategic move is set to consolidate the companies' assets and align with Brightstar's ambition to become a mid-tier gold producer in Western Australia (WA).
Brightstar managing director Alex Rovira said: “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.
“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.”
Under the proposal, Linden shareholders would receive 6.9 Brightstar shares for every one Linden share they hold and 6.9 Brightstar options for each Linden option held.
Post-acquisition, Brightstar and Linden shareholders would own 62% and 38% of the merged entity, respectively.
The proposal values Linden's undiluted equity at around $23.7m (A$36.24m).
Linden's directors, who represent 13.2% of the company, along with major shareholders, including St Barbara with a 19.8% stake, have agreed to accept the offer, barring a superior bid.
These pre-bid agreements and statements of intent cover around 67.3% of Linden's shares and options.
St Barbara has formalised its commitment through a pre-bid acceptance agreement with Brightstar, agreeing to the terms in the absence of a better offer.
Additionally, significant shareholders such as Mako Mining, Mine Trades and Maintenance – Electrical and Blue Capital Equities have informed the Linden Board of their intentions to accept the offer, subject to the same condition.
The merger is a strategic fit for Brightstar's growth strategy, aiming to elevate the company's status in the gold production industry by leveraging the combined assets from two of WA's most prolific gold-producing regions.
