Catalyst Metals (ASX: CYL) has unveiled plans for a major consolidation of the rich Marymia-Plutonic gold belt in Western Australia.
The James Champion de Crespigny-led company announced today that it has made an agreed $66 million takeover bid for Vango Mining (ASX: VAN).
Catalyst also revealed that it is in discussions to acquire the Plutonic gold mine next to Vango’s Marymia project.
The combined Marymia-Plutonic projects would have resources of almost 7Moz with a 3Mtpa plant, providing Catalyst with cash flow, strong potential to grow production and mine life and generate growth through exploration.
Vango’s directors have unanimously recommended the off-market scrip takeover bid. The company has global resources of 1Moz gold at 3.3 grams per tonne gold.
Its tenements also host more than 40km of highly prospective and under-explored strike along the world-class Marymia-Plutonic gold belt.
Benefits of combining the projects
Mr Champion de Crespigny said Catalyst would apply its exploration expertise and operational cash flow from its Henty Gold Mine in Tasmania to drive an aggressive exploration program at Marymia.
“This transaction is important for Catalyst and Vango shareholders … it turns a new leaf for the future of both companies,” he said.
“The combined group will have the financial strength and technical expertise to unlock the value of the prospective Marymia tenements.”
“There is immense potential to create significant value for all shareholders by driving an aggressive exploration strategy on what has already proven to be a plus-15Moz Australian gold belt.”
Meanwhile, Vango executive chairman Bruce McInnes said to takeover was an “ideal recipe” to create value for all Vango shareholders and the board “unanimously” supports the bid.
“Bringing together Marymia’s huge exploration upside and the funding and technical knowledge of Catalyst makes enormous sense for all shareholders.”
Takeover bid details
The takeover will see Vango shareholders receive five Catalyst shares for every 115 Vango shares. The implied offer value of $0.052 per Vango share represents a premium of:
- 1% to the closing price of Vango Shares of $0.044 on 6 January 2023;
- 2% to the five-day VWAP of Vango Shares of $0.04 and 33.5% to the 30-day VWAP of Vango shares of $0.039.
Vango shareholders will own up to 35.7% of the enlarged Catalyst group following completion of the offer.
Catalyst said Vango’s major shareholders and directors, Hunter Guo and Carol Zhang, have entered into binding pre-bid acceptance agreements with Catalyst in respect of a total of 252 million Vango Shares, representing 19.99% of current Vango shares.
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