I had not realised Mark Connolly was chairman- (although I have not studied Warriedar to any extent beyond looking in every now and then and deciding to double my little punt when the price retreated recently …. And noticing a while back that you and @wasa were a bit cranky about the company, @Joelstar ?
But there he is,and WSJ says he [has been at the helm of 18 different companies] and at Antares they write he has a big history in deal making;
He (famously for me) had helped groom Primero, leading into the NRW acquisition of that company, then promptly dumped his shares.
And so I figure - based only on that evidence -that Warriedar was always going to be a corporate play?
or has been for at least the three years and ten months that Amanda Buckingham has been CEO?
Amyway it’s exciting to be part of this in a small way, and I hope you guys ‘win’ Joelstar!
Capricorn Metals (ASX: CMM) has won board and major shareholder backing from takeover target Warriedar Resources (ASX: WA8) for its proposal to combine the two companies’ significant Western Australian gold assets.
Capricorn will acquire 100% of the securities in Warriedar, with the latter’s shareholders to receive one new Capricorn share for every 62 Warriedar shares, giving them approximately 4.36% ownership of Capricorn.
Based on Capricorn’s last close price of $9.60, the transaction implies an equity value of approximately $135 million for Warriedar.
WA Gold Consolidation
The merger will add Warriedar’s flagship Golden Range Project (GRP), including the Ricciardo gold-antimony deposit and the Fields Find gold project, to Capricorn’s portfolio.
Strategically, the GRP assets are all located 90 kilometres from Capricorn’s Mt Gibson Gold Project (MGGP) development, and Capricorn views the two operations as highly complementary.
Capricorn anticipates the GRP acquisition will immediately increase its existing WA mineral resource base by approximately 25% while providing additional scale and exploration upside to augment the MGGP’s long-term potential.
It also sees strong synergies with the GRP’s processing plant (which is not currently operational) and other low-cost regional development opportunities through the project’s other infrastructure to enhance the MGGP in the medium term. Warriedar Board Approval
The Warriedar board has unanimously recommended the scheme, in the absence of a superior proposal and subject to an independent expert concluding it is in the best interests of the company’s shareholders.
Warriedar’s two major shareholders, representing approximately 14.5% of the company’s shares, have said they intend to vote in favour of the scheme.
The company’s directors, who together hold 1.9% of the total shares on issue, have also confirmed their intention to vote in favour. ‘Compelling Transaction’
“This is a compelling transaction for all stakeholders, and we believe that combining Capricorn and Warriedar represents a unique opportunity to generate value for shareholders of both companies,” Capricorn executive chair Mark Clark said.
“This acquisition […] adds resource ounces, highly prospective exploration targets, and valuable infrastructure that will further enhance what is clearly one of the best development projects in the Australian gold industry.”
“We believe this transaction is a great outcome for Warriedar shareholders and stakeholders, who will benefit from the development of the GRP as part of an enlarged gold company with an exciting future,” Warriedar chair Mark Connelly added.
WA8 Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
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