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Highlights
- Maximus Resources (ASX:MXR) board unanimously supports Astral Resources’ (ASX:AAR) offer.
- Shareholders set to receive an implied value of $0.073 per Maximus share.
- Astral now holds a 46.36% stake in Maximus.
The leadership of Maximus Resources (ASX:MXR) has officially recommended that shareholders accept an acquisition proposal from Astral Resources (ASX:AAR). The offer consists of one Astral share for every two Maximus shares held, valuing each Maximus share at approximately $0.073. This valuation is based on Astral’s five-day volume-weighted average price (VWAP) of $0.145 before the February 3, 2025, announcement.
With the offer scheduled to close at 7:00 PM (AEDT) on March 7, 2025, unless extended, Astral has already secured a 46.36% stake in Maximus, holding nearly 199 million shares as of February 17.
Board’s Approval and Shareholder Benefits
All Maximus directors have committed to accepting the offer for their own shares, amounting to 5.1 million shares or 1.2% of total issued stock, in the absence of a superior proposal.
The offer presents a significant premium over previous trading prices:
- 61% premium to the last closing price of Maximus shares on December 24, 2024 ($0.045).
- 67% premium to the 30-day VWAP ($0.043).
- 48% premium to the highest closing price in the past year ($0.049).
- 175% premium to the lowest closing price in the past year ($0.026).
- Resource valuation of $93 per ounce based on Maximus' mineral estimates.
Strategic Advantages of the Deal
The acquisition offers Maximus shareholders exposure to a larger, diversified gold asset portfolio. Astral’s Mandilla Gold Project, one of Western Australia’s largest undeveloped single-pit gold deposits, has an estimated 1.27 million ounces of gold and is progressing through feasibility studies.
Combining the Mandilla project with Maximus’ assets and mining leases strengthens development potential, creating a broader production pathway. The new entity will have an estimated market capitalisation of $205 million and a combined mineral resource of 1.8 million ounces of gold, enhancing its exploration potential.
Financial Stability and Future Prospects
Maximus, primarily focused on exploration and brownfield development, is not currently generating revenue. Future development would require raising funds through equity, debt, or asset sales.
Astral’s strong financial position, with approximately $25.2 million in cash as of December 31, 2024, significantly reduces the need for immediate capital raising. The company’s robust institutional investor backing was demonstrated by a $25 million equity capital raise in September 2024.
No Competing Offers on the Table
As of now, no superior proposal has emerged, and with Astral already holding a 46.36% stake, the possibility of a competing bid appears low.
With these factors in mind, Maximus Resources has signaled confidence in the transaction, paving the way for an integrated and financially stronger gold exploration and development company.
