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Highlights
- - Astral Resources proposes a takeover bid to Maximus Resources for expansion in the Eastern Goldfields.
- - The deal aims to create a stronger Kambalda gold miner with a robust resource base.
- - Astral acquires a significant stake in Maximus while awaiting project development updates.
Astral Resources (ASX:AAR) has put forward a non-binding offer of seven cents per share to acquire Maximus Resources (ASX:MXR) in a move aimed at solidifying its presence in the Eastern Goldfields region of Western Australia. The all-scrip, off-market proposal is designed to create a stronger Kambalda-focused gold miner with a combined resource inventory of approximately 1.8 million ounces of gold.
Astral currently holds over one million ounces across its Mandilla and Feysville projects, both situated near the renowned Goldfields mining hub. The takeover aligns with the company’s strategy to explore opportunities for growth and expand its portfolio in the region.
The offer represents a significant premium of 56% over Maximus Resources' last closing price before Christmas, which stood at 4.5 cents. Astral has highlighted the attractive valuation, stating that the offer price equates to $91 per ounce based on Maximus' current JORC-compliant mineral resource estimate.
In parallel with the takeover bid, Astral has strategically acquired an approximately 19.99% stake in Maximus Resources through agreements with Beacon Minerals and Colin Petroulas. These deals included the purchase of 85.5 million Maximus shares, providing Astral with a substantial position in its target company. Beacon Minerals and Colin Petroulas continue to hold a combined stake of around 16%.
Following the announcement, market reactions were mixed. Shares of Maximus Resources surged by over 31% to 5.9 cents, reflecting optimism about the deal. However, Astral Resources saw its stock dip by around 8%, indicating some investor uncertainty over the proposed transaction.
Astral’s long-term growth plans also include advancing its Mandilla project, where a scoping study suggested a capital cost of $191 million to develop a 100,000-ounce-per-year operation. The company is currently awaiting the results of a pre-feasibility study to guide its next steps.
Even if the takeover does not proceed, Astral remains well-positioned with its existing gold inventory of 1.27 million ounces at Mandilla and 1.46 million ounces at Feysville. The proposed acquisition represents a step toward consolidating its standing as a key player in the Kambalda region, with the potential to unlock further value for shareholders.
