Astral Resources Targets Expansion with Maximus Resources Acquisition

2 min read | December 30, 2024 12:00 AM AEDT | By Team Kalkine Media

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Astral Resources Targets Expansion with Maximus Resources Acquisition — Image source: shutterstock

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Highlights

- Astral Resources (AAR) aims to acquire Maximus Resources (MXR).

- Proposed deal could result in a 1.8-million-ounce gold resource inventory.

- Maximus board progressing with due diligence and exclusive negotiations.

Astral Resources (ASX:AAR) has set its sights on acquiring Maximus Resources (ASX:MXR), aiming to create a combined entity with a significant gold resource inventory. The proposed deal includes a combined total of 1.8 million ounces of gold resources, enhanced share liquidity, and no immediate capital raising needs.

Astral has submitted a non-binding indicative proposal to Maximus' board to acquire all issued shares in Maximus through an all-scrip, off-market takeover offer valued at 7 cents per share. The Maximus board has not yet approved the transaction but has agreed to proceed with due diligence and exclusive negotiations toward a binding agreement.

Potential Benefits for Maximus Shareholders

Astral Resources highlights the combined benefits for Maximus shareholders, who would become part of an entity with a strong gold resource base. The proposal includes Maximus’ Hilditch and Larkinville deposits alongside Astral’s Mandilla and Feysville projects.

Maximus shareholders stand to benefit from a premium represented by the 7 cents per share offer price, which translates into:

- A 56% premium over the last closing price of Maximus shares at 4.5 cents.

- A 61% premium compared to the 30-day volume-weighted average price (VWAP).

- A 43% premium above the 12-month high share price of 4.9 cents.

- A 165% premium above the 12-month low of 2.6 cents.

The offer price also equates to a valuation of $91 per ounce, based on Maximus’ published mineral resource estimate (MRE).

In early ASX trading, Maximus shares surged to 6.4 cents, marking a two-year high and a 42.23% increase from the previous close.

Astral Acquires Strategic Stake

Astral Resources has further secured a 19.99% stake in Maximus through share sale agreements. It acquired approximately 85.5 million Maximus shares via a share swap with Beacon Minerals Limited and Colin Petroulas. Astral issued around 40.8 million of its own shares in exchange for the Maximus shares, valuing the transaction at approximately 7 cents per share based on Astral's two-day VWAP through December 24, 2024.

As Astral moves forward with its acquisition plans, the market response and Maximus’ final decision will determine the future trajectory of this potential merger.

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