Austar Gold (ASX:AUL) And White Rock Minerals (ASX:WRM) All Set To Merge

AuStar Gold Limited (ASX:AUL) and White Rock Minerals Ltd (ASX:WRM), on 3 February 2021, announced that both the Companies have signed a binding Merger Implementation Deed (MID). 

Following are the key takeaways from the announcement:

  • According to the signed deed, White Rock will acquire 100% of the issued share capital of AUL by way of a scheme of arrangement between AuStar Gold and its shareholders.
  • As per the proposed scheme of arrangement, shareholders in AuStar Gold will get 0.78 White Rock shares for every single AuStar share they possess.
  • The deal is subject to an independent expert’s report that would confirm whether the scheme is in the best interests of AuStar shareholders or not.
  • If the deal goes ahead, the output entity as a result of the merger, will be named White Rock Minerals Ltd.
  • The merged group is expected to get benefitted from various elements such as a substantial management, corporate collaborations, a strong and fortified balance sheet, a much bigger profile covering the North American and Australian capital markets, and access to a continuing legion of talented geologists and experienced mining professionals.

AuStar Gold director Paul McNally shared that this particular transaction delivers a road ahead for more activities on the Company’s Victorian gold tenements. He further said that the shareholders will be exposed to White Rock’s high-potential exploration and development assets in Alaska and New South Wales, which is great.

Meanwhile, the AUL stock was spotted trading at $0.340 per share, up 15.254% with market capitalisation at $15.86 million while WRM was trading at $0.530, down 7.827%, with market capitalisation at $41.80 million at 4:11 PM AEDT.

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