Capricorn Metals to acquire Warriedar Resources through all-shares deal
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The news: Gold miner Capricorn Metals has entered a binding scheme implementation deed that proposes an all-scrip acquisition of gold and copper miner Warriedar Resources.
The numbers: The scheme proposes to pay Warriedar shareholders one new Capricorn share for every 62 Warriedar shares held.
Based on Capricorn’s last close price of $9.60, the implied value of each Warriedar share is about $0.155 each. This is a 29% premium on Warriedar’s last close price of $0.12 and a 3% premium on Warriedar’s 30-day volume-weighted average price of $0.115 per share.
Given that Warriedar has nearly 1.2 billion shares on issue, the implied equity value of Warriedar would be around $135 million.
The context: Warreidar managing director Amanda Buckingham would join Capricorn for an initial period of 12 months to provide leadership continuity.
The Warriedar board unanimously recommends shareholders accept the scheme in the absence of a superior proposal and subject to an independent expert’s assessment.
Major shareholders Hermit Investment and Patrick Purcell, who hold a 11.9% and 2.6% interest in Warriedar respectively, intend to vote in favour of the scheme.
What they said: Warriedar chair Mark Connelly said the proposed takeover delivers “an attractive premium” and allows shareholders to “retain ongoing. But significantly de-risked, exposure to the exploration and development of the Golden Range project, more diversified enterprise with a strong balance sheet, cashflow generation and technical expertise”.
The source: ASX
