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Spitfire to purchase Aphrodite
Posted on Tuesday, 14 November 2017 09:48
Australian mining firm Spitfire Materials has lodged a scheme booklet for its AUD 27.75 million (USD 21.95 million) acquisition of Aphrodite Gold.
It already owns 10.4 per cent of the target and is snapping up the remaining 89.6 per cent stake via the all-stock deal.
The implied offer price of AUD 0.04 per share represents an 87.1 per cent premium over the target’s close of AUD 0.02 on 11th August 2017, the last trading day prior to date when the bid was first announced.
On condition that the scheme becomes effective, the sellers, which include Aphrodite’s director Peter Buttigieg, will receive the consideration shares on 10th November 2017 and will control about 50.0 per cent of the buyer as a result.
The deal remains subject to approvals from shareholders and regulators.
Aphrodite is engaged in gold exploration and mining and operates a project in the north of Kalgoorlie in Western Australia.
Its asset has been granted five licenses for exploration, prospecting and other related activities, and comprises five contiguous mining leases, which expire in 2028.
Spitfire currently owns the Alice River and Mulwarrie gold exploration projects, located in Queensland and Western Australia (WA), respectively, as a result of its acquisition of Admiral Gold in June this year.
It also operates two other gold assets and a Manganese project in its home country.
The deal will allow Spitfire to diversify its assets, increase scale and liquidity, boost investor base and accelerate its exploration and development activities.
Upon completion, the amalgamated group will have combined market capitalisation of AUD 49.08 million and pro forma cash as at 30th June 2017 of around AUD 6.50 million.
The entity will also have no debt obligations, except for those under the Franco Nevada royalty agreement in relation to the target’s Aphrodite gold project.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 630 announced deals targeting metal mining support services providers in Australia since the beginning of this year.
The largest of these was Shandong Tyan Real Estate Development’s AUD 330.00 million acquisition of Hanking Australia, a gold exploration unit of China Hanking Holdings, in April.
© Zephus Ltd