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Zeta to buy Bligh
Posted on Thursday, 20 April 2017 11:28
Zeta Resources has agreed to purchase the remaining 80.1 per cent stake that it does not already own in Australian gold and manganese explorer Bligh Resources for about AUD 6.52 million (USD 4.90 million) in cash via a public takeover.

The buyer is offering AUD 0.04 apiece for the company, representing a premium of 9.4 per cent over the target’s close of AUD 0.03 on 18th April 2017, the last trading day prior to the deal being announced.

Roughly 186.20 million stocks will be issued to Zeta, a business which already holds a 19.9 per cent interest in the firm.

Bligh’s board has advised that shareholders take no action in relation to the offer at this time, which is subject to a minimum acceptance of a 50.0 per cent stake in the target.

Earlier this year, Bligh signed on the dotted line to sell its Bundarra gold project to Saracen Mineral Holdings for AUD 8.50 million in stock, in a deal which will enable the group to release immediate value for the operations.

The transaction is expected to close in April 2017, subject to the green light from certain shareholders.

Bligh is headquartered in North Sydney and operates as a public company focused on the exploration and development of gold projects throughout the country.

The group currently has 512.00 kilometres of highly prospective gold tenements located throughout Western Australia and a manganese tenement portfolio in the Northern Territory.

Bermuda-headquartered Zeta is a closed-end investor which is currently listed on the Australian Securities Exchange.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 630 deals targeting metal miners announced worldwide so far in 2017, with China-based Shaanxi Ligeance Mineral Resources’ CNY 2.79 billion (USD 405.18 million) share placing being the largest.

© Zephus Ltd