Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Stratex extends deadline for completion of Crusader acquisition

The deadline by which the deal must be completed has been pushed back until 28 February
gold
Englebrecht thinks Crusader's Borborema gold asset could generate around US$30mln in cash per year

Stratex International plc (LON:STI) has extended the deadline for completing its controversial takeover of  Crusader Resources Limited (ASX:CAS) to 28 February 2018.

Chief executive, Marcus Englebrecht, wants to acquire Crusader primarily because of its Borborema gold asset in Brazil, which he thinks could be moved into production quickly and generate US$30mln in cash per year.

WATCH: Stratex International's Marcus Engelbrecht reinforces transformative potential of Crusader deal

The trouble is, some shareholders and former directors are opposing and are trying to vote Englebrecht off the board and stop the transaction from taking place.

Removal of certain conditions

One of the conditions originally put in place for the deal to go through was that Stratex had to apply for a listing of CHESS depositary interests (CDIs) representing its shares on the Australian Securities Exchange.

However, the company will now have to apply to establish a secondary listing of CDIs on ASX within three months of the scheme being implemented which should coincide with a planned placing.

If granted, the CDI facility would allow all Stratex shareholders to elect to convert their shares to CDIs and trade them on the ASX.

READ: Englebrecht says Crusader attractive on all metrics

Stratex has also said it wont have to consolidate its shares on a 20:1 ratio anymore.

That means Crusader shareholders will receive 6.6 Stratex shares for every Crusader share held.

Stratex added that its current intention is to undertake a future consolidation of its issued share capital in connection with the CDI listing process.

Another A$1mln of funding for Crusader

Given the extended timetable for the acquisition, Stratex has agreed to lend Crusader another A$1mln.

The two already had an existing A$1mln secured convertible note agreement in place which Crusader has fully drawn down on.

The latest funding will be issued in various tranches, starting with A$125,000 which is to be made available immediately.

Stratex shares were down 5.6% to 1.25p in mid-morning trade.

View full STI profile View Profile

Stratex International plc Timeline

Related Articles

1513945199_Humm2.jpg
December 22 2017
The plan in 2018 is to deliver not one doré bar, but a 130,000 ounces of the yellow metal
underground mine
Fri
Annual guidance for 2018 is 82,000-88,000 oz at AISC of US$680-730 oz
1522151008_gold_bars,_sized.png
Tue
Orsu Metals looks set for a transformative year, with a sizeable gold resource expected in an already prolific area

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use