So that is all done, tomorrow KWR is gone from the ASX then some tidy up work etc then I guess those interested will be on the BTR forum. Some may find Neils comments interesting.
Neil Watkinson - Kalgoorlie Miner Thu, 16 March 2023 5:00AM
Kingwest Resources shareholders have been given an improved offer of one Brightstar Resources share for every 38 they hold under a revised consideration of the proposed merger of the two Goldfields mining companies.The companies told the ASX on Wednesday the new scheme of arrangement which will see Brightstar acquire 100 per cent of Kingwest shares had come about following stakeholder engagement and feedback on the initial proposal.The original plan was for Kingwest shareholders to get one Brightstar share for every 44 they held.The companies said Kingwest would hold 47 per cent of the new entity and Brightstar 53 per cent, compared with 43 per cent and 57 per cent, respectively, under the initial proposal.
The merger was announced in December, with Alex Rovira appointed managing director of the merged company.The role is Mr Rovira’s first gig in charge of a gold company — he worked for Canaccord Genuity investment bank for the past 10 years.However, he has degrees in geology and corporate finance, and his father is Tony Rovira, who is renowned as playing a central role in the celebrated Cosmos nickel discovery in 1997 and who has been the managing director of Azure Minerals for 17 years.Brightstar has three main projects north and south of Laverton, as well as a 485,000 tonnes per annum processing plant on care and maintenance, while Kingwest has the Menzies and Goongarrie gold projects north of Kalgoorlie-Boulder.The combined entity will have a market capitalisation of about $23.6 million, with about $4.6m in cash and 965,000 ounces of gold.On Wednesday, Mr Rovira said Brightstar remained committed to the “transformational transaction” which would create a larger, diverse junior gold play.
“The revised merger terms ensure all shareholders retain a meaningful stake in the merged group, and we strongly believe that the potential of the combined asset portfolio will deliver material benefits for all shareholders,” he said.Kingwest on Wednesday also announced prominent Kalgoorlie-Boulder businessman Ashok Parekh would not join the board of the new company after all.
The initial proposal was for the new Brightstar board to have three Kingwest directors — chairman Gregory Bittar, Jonathan Downes and Mr Parekh.But Kingwest said in consideration of the proposed Brightstar board size and composition, Mr Parekh had indicated he supported a smaller board with a reduced financial impost on Brightstar.I would . . . like to express Kingwest’s great appreciation to Ashok for his support during his time on the Kingwest board, particularly through this transaction,” Mr Bittar said.“Whilst Ashok was incredibly enthusiastic about being part of the merged group and serving on the Brightstar board, he recognised that it was in the interests of all shareholders for the size of the merged board to be appropriate for the size and scale of the merged group.
”The Brightstar board would now have five directors — Mr Rovira, Yongji Duan and Joshua Hunt from Brightstar, and Mr Bittar and Mr Downes from Kingwest.On Wednesday, Mr Rovira said the merged company would quickly assess development scenarios in a strengthening gold price environment.In December, Mr Rovira told the Kalgoorlie Miner that identifying other smaller-scale mergers and acquisitions in the northern Goldfields was one of the possible future paths.
Buts some sort of eventual tie-up with Raleigh Finlayson’s new Hoover House company, the $1 billion merger of his Genesis Minerals outfit with St Barbara’s Gwalia operation at Leonora, “can’t be ruled out”,”
he said.“More consolidation of the gold sector in WA is needed,” he said.
Cheers Phil.
KWR Price at posting:
2.9¢ Sentiment: None Disclosure: Held
