New management at Stratex International plc (LON:STI) has signalled a change of focus with a reverse takeover of Aussie-listed but Brazil-focused gold miner Crusader Resources Ltd (ASX:CAS).
Crusader has two advanced gold projects in Brazil, Borborema and Juruena, with combined JORC-compliant resources of 2.7Moz Au, as well as the Posse iron ore mine.
The share based-deal values Crusader at £31.1mln (A$54.2mln) and will see its shareholders end up with an 81% stake in the enlarged company.
Marcus Engelbrecht, Stratex’s chief executive, said: "We are delighted to have entered into this Agreement with Crusader which, if successfully implemented, will see Stratex acquire substantial and highly prospective gold projects to add to our already exciting asset portfolio.
This development is aligned with our long-term strategy of becoming a significant gold production, development and exploration company, and we believe it has the potential to provide significant value to our shareholders and take us a step closer to operating highly deliverable gold mines."
Stephen Copulos, Crusader's chairman, added: “The proposed transaction should, if implemented, provide for an uplift in value for Crusader shareholders and with Stratex's existing cash balance of over A$12mln, funding to progress the Borborema and Juruena projects.
“The combined company will be able to leverage off its significant balance sheet, strong portfolio of gold development and exploration assets and highly regarded combined management team to move forward to project development in the near-term."