| Gold explorers in Tanzania plan merger | Send to a friend |
| Wednesday, 25 January 2012 21:41 |
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Under the scheme implementation agreement, Rift Valley shareholders would receive 1.25 BrightStar shares for each Rift Valley share held. The combined group would have a market capitalisation of some A$47 million based on the ASX closing prices of the two companies, and would have cash on hand of about A$12.6 million. This would see the group well financed through the next phase of exploration and resource definition work, as well as allowing the merged company scope to pursue further growth initiatives. The companies said in a joint statement that the friendly merger would create a leading, independent Tanzanian gold exploration company with an objective of becoming a 200, 000 oz/y producer, with a resource of some two-million ounces. The merged entity would have an interest in around 760, 000 oz of gold at two key projects, namely Kitongo and Miyabi, as well as being able to pursue advanced greenfield exploration projects in the pipeline. “The combined entity will be able to leverage off the benefit of creating a larger company with the depth of expertise and skills, funding ability, scale of operation and market capitalisation to make a significant impact in the Tanzanian resources landscape,” commented Rift Valley chairperson Didier Murcia. (Agencies) Add this page to your favorite Social Bookmarking websites           |
