Beacon Minerals Signs Share Sale Agreement with Astral Resources, Selling Stake in Maximus Rsources

2 min read | December 31, 2024 12:26 PM AEDT | By Team Kalkine Media

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Beacon Minerals Signs Share Sale Agreement with Astral Resources, Selling Stake in Maximus Rsources — Image source: shutterstock

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Highlights

Beacon Minerals to sell 11.99% interest in Maximus Resources to Astral Resources.

The transaction includes the exchange of 51.3 million Maximus shares for 24.5 million Astral shares.

Beacon retains a call-back option to repurchase the shares under certain conditions.

Beacon Minerals Limited (ASX:BCN) has announced the execution of a Share Sale Agreement with Astral Resources NL (ASX:AAR), whereby Beacon will sell a portion of its shares in Maximus Resources Limited (ASX:MXR). Under the agreement, Beacon will transfer 51,308,530 Maximus shares—representing an 11.99% interest in the company—to Astral in exchange for 24,455,924 fully paid ordinary shares in Astral. The exchange ratio equates to one Astral share for every 2.098 Maximus shares.

As of Friday, 27 December 2024, Astral shares closed at $0.15 per share, further valuing the transaction.

Strategic Move Aligned with Long-Term Gold Operation Focus

This sale aligns with Beacon’s strategic focus on developing a long-life gold operation at the Jaurdi Gold Project. The acquisition of the Lady Ida Project has bolstered resources closer to the Jaurdi site, prompting a shift in focus towards expanding Beacon’s gold operations. Beacon’s recent mineral resource estimate at the Iguana Deposit and the upcoming pre-feasibility study for the Lady Ida Project, expected to be released in the first quarter of 2025, are key steps in this strategic transition.

Call-Back Option Provides Future Flexibility

As part of the transaction, Astral has granted Beacon a call-back option to repurchase the 51,308,530 Maximus shares under certain conditions. The call-back option will lapse after 12 months, the completion of a takeover bid for Maximus, or an Astral scheme of arrangement. Beacon can only exercise the option once, and if exercised, the completion of the transaction will occur one business day after the option is exercised.

Following the completion of the sale, Beacon will retain a 7.72% interest in Maximus with 33,031,433 shares and will continue to evaluate options for its remaining shareholding.

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