SYDNEY, AUSTRALIA: Brightstar Resources Limited has announced its intention to acquire Linden Gold Alliance Limite through an off-market scrip takeover offer that has been unanimously recommended by Linden’s Directors.

Linden, a gold production company with a strong foundation in development and exploration, boasts mineral resources of approximately 350,000 ounces at 2.1 grams per tonne of gold, strategically located near Brightstar’s operations in the Laverton district.

The terms of the offer stipulate that Linden securityholders will receive 6.9 Brightstar shares for every Linden share they hold, as well as 6.9 Brightstar options for each Linden option held. This arrangement translates to an implied offer price of 11.04 cents per share, valuing Linden’s undiluted equity at an estimated $23.7 million.

In a show of confidence, Linden’s Directors, who represent 13.2% of the company, along with major shareholders including St Barbara Limited, accounting for roughly 67.3%, have entered into pre-bid agreements or expressed their intention to accept the offer, contingent on the absence of a superior proposal.

The acquisition is subject to certain conditions, including a minimum acceptance threshold of 90% from Linden’s shareholders and optionholders. Concurrently, Brightstar has initiated a trading halt to facilitate a two-tranche placement aimed at raising up to A$12.0 million, independent of the offer’s success.

The placement has garnered robust support from key stakeholders, with Collins Street Asset Management and St Barbara committing a combined total of $4.3 million, and the mining investment firm Lion Selection Group pledging $2 million to become a Brightstar shareholder.

Upon successful completion of the offer, Linden’s Andrew Rich and Ashley Fraser are set to join Brightstar’s leadership as Executive Director and Non-Executive Director, respectively. Additionally, the respected industry professional Richard Crookes is poised to assume the role of Independent Non-Executive Chairman on Brightstar’s Board of Directors.

The merger is poised to fortify Brightstar’s financial position, boasting a pro forma balance sheet with $22 million in cash and no debt, thereby enhancing operational flexibility and accelerating the development of the combined entity’s asset portfolio.

Brightstar’s Managing Director, Alex Rovira, expressed enthusiasm for the transaction, highlighting its alignment with the company’s strategic goal of evolving into a mid-tier gold producer. He emphasized the synergistic potential of the merger, which promises to bolster operational expertise and financial strength, driving development and growth.

Echoing this sentiment, Linden’s Managing Director, Andrew Rich, conveyed the Linden Board’s excitement about the offer, underscoring the mutual benefits and synergies anticipated from the integration of Brightstar’s and Linden’s complementary teams and assets.

The proposed union of Brightstar and Linden is set to establish a formidable gold production and development company, equipped with a substantial resource base that supports Brightstar’s ambition to become a prominent mid-tier gold producer.