Brazil-focused gold explorer Crusader Resources has recommended shareholders accept an all-scrip takeover offer from AIM-listed Stratex International, that values the target at $54 million.
Perth-based Crusader and Stratex have entered into a binding scheme implementation deed, under which every Crusader share will be exchanged for 6.6 common Stratex shares, or 6.6 Stratex shares in the form of ASX-listed chess depository interests.
Stratex will establish an ASX listing as part of the deal, while Crusader’s listing will be cancelled.
The acquisition values Crusader shares at 18 cents each, equal to a 68.9 per cent premium to Crusader’s 30-day volume-weighted average price.
If the takeover is successful, Crusader shareholders will emerge with an 81 per cent stake in the combined business.
Crusader's directors have signalled their intention to vote in favour of the offer, and have recommended shareholders do the same.
“Since announcing the heads of agreement in May, the merits of combining Crusader and Stratex have only become clearer,” Crusader chairman Stephen Copulos said.
“(Stratex CEO) Marcus Engelbrecht and his team have had the opportunity to witness first-hand the value in Crusader’s Borborema and Juruena projects.
“With the additional capital, expanded supportive shareholder base and early stage exploration projects Stratex provides, we have a very real opportunity to add significant value for all shareholders.”
The deal is expected to close in October.
Crusader shares were 4.3 per cent higher to 12 cents each at 11:30am.
