Published: March 27, 2024 |

[Click image to enlarge]

[Click image to enlarge]

Brightstar Resources has agreed to acquire all the issued ordinary shares and options in Linden Gold, through an unanimously recommended off-market scrip takeover offer.

Linden is an Australia-based gold producer, developer, and explorer with significant landholding in the South Laverton Goldfields in Western Australia.

Under the terms of the bid implementation agreement (BIA), Linden shareholders will receive 6.9 Brightstar shares for every Linden share held.

Also, Linden shareholders will receive 6.9 Brightstar options for every Linden option held, equating to an implied offer price of $11.04 per share.

The unlisted options held by the Linden option holders, if not exercised into ordinary shares before the offer closes, will be exchanged for unlisted options in Brightstar.

The offer implies an undiluted equity value for Linden of around $23.7 million.

“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,” said Brightstar Managing Director Alex Rovira.

“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,” added Rovira.

Upon implementation of the offer, Brightstar shareholders will hold 62 percent and Linden shareholders will hold 38 percent ownership of the combined company.

Linden’s board of directors unanimously recommended that Linden shareholders and option holders accept the offer, in the absence of a superior proposal.

Australia-based gold mining company St. Barbara has signed a pre-bid acceptance agreement with Brightstar to accept the offer in respect of its existing 19.8 percent holding in Linden.

Linden’s major shareholders and their associated entities, Mako Mining, Mine Trades and Maintenance-Electrical (MTM), and Blue Capital Equities (BCE) intend to accept the offer.

Brightstar said that the merger is aligned with its strategy to become a mid-tier gold producer from two of West Australia’s most prolific regions, Laverton and Menzies.

“Brightstar’s team and assets are highly complementary to Linden’s, and we believe the combination will unlock material synergies to the benefit of all shareholders,” said Linden Gold Managing Director Andrew Rich.

“The offer provides Linden shareholders with a range of benefits, including exposure to a liquid, growing ASX-listed gold producer, a strengthened balance sheet, and the ability to utilize Brightstar’s existing infrastructure and resource base,” added Rich.

Source: NS Energy

Brightstar Resources, together with its subsidiaries, explores for and develops mineral properties in Australia. The company primarily explores for gold deposits. It holds interests in the Alpha, Beta, and Cork Tree Well (Delta) Deposit located in Western Australia. The company was formerly known as Stone Resources Australia Limited and changed its name to Brightstar Resources Limited in December 2020.

Linden Gold is a company that operates in the manufacturing, mining, and precious metals industries. The company has consolidated a significant landholding in the South Laverton Goldfields. Linden Gold’s board of directors is committed to providing ethical leadership and is working to build the company into a major gold producer. The company has a complementary portfolio of production, development, and exploration assets located in the Laverton Tectonic Zone.

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