www.bullabullinggold.com
Bullabulling Gold Limited is an Australian and UK publicly quoted mining exploration company headquartered in Perth, Western Australia. The Company is the successor entity of GGG Resources plc.
Bullabulling Gold is the 50% owner of a large previously producing mine called Bullabulling. We will acquire the remaining 50% interest in the project under an Australian court approved scheme in April 2012, subject to shareholder and final court approval.
Located in the goldfields of Western Australia, Bullabulling is within easy commuting distance of the main gold mining centre of Kalgoorlie which is less than 80kms away on the main Perth Kalgoorlie highway. The project straddles the main highway with mains power and water running through it.
The company has presently 170 million shares in issue which will rise to circa 290 million shares once Bullabulling Gold Limited acquires the remaining 50% interest in the project.
GGG Resources and Auzex confirm Bullabulling Gold merger
GGG Resources (LON:GGG, ASX: GGB) and its joint venture partner Auzex Resources (ASX:AZX) today gave investors more insight into plans to consolidate the ownership of the Bullabulling gold project.
Last week the partners announced that they had agreed to consolidate the project ownership – following a protracted and ultimately unsuccessful cat-and-mouse takeover battle, instigated by GGG – but the precise details of the deal were not disclosed.
Now the company has confirmed that the deal will take the form of an all share merger, to create a new single entity, called Bullabulling Gold. Auzex and GGG shareholders will each own 50 percent of BBG each (adjusted for the Auzex securities already owned by GGG prior to its conversion and the relative cash holdings of both companies).
Bullabulling gold will have a new independent board of directors and a unified management team, with a sole focus on the development of Bullabulling. The company will be listed on the Australian securities exchange and the London AIM market.
"We are delighted to announce that we are consolidating our highly attractive Bullabulling gold project into a single corporate entity,” said GGG chairman Peter Ruxton.
“This is clearly the most desirable outcome for both GGG and AZX shareholders in terms of creating value.
“Asset consolidation was something that we recognised was needed from the beginning. With an accelerated development plan in motion, coupled with the recent and upcoming JORC update, we feel this is the right time to recommend this deal to our shareholders.”
Ruxton added: “To facilitate its full independence, Bullabulling Gold Limited will operate with a new independent board led by a senior management team operating out of Western Australia with help and assistance from a number of existing GGG and AZX directors during the transition phase.
"And while we are in a high gold price environment, we are pleased that BBG will be finding out just how significant the gold deposit could potentially be, as well as fast-tracking the mine through feasibility studies. Consolidation of the asset will enable this process to be accelerated."
To facilitate the merger a number of steps will be taken. First GGG has agreed to let its takeover bid lapse and it will not buy any of the shares it tendered for. Meanwhile Auzex will demerge all its other assets, which do not relate to Bullabulling.
While all the corporate manoeuvring is completed GGG and Auzex will form a separate jointly owned management company (OpCo) to oversee the ongoing work programme and deliver the agreed operational strategy.
The management company will initially comprise 3 directors from both GGG and Auzex - with Nigel Clark and Chris Baker acting as co-Chairman until a new Chairman is appointed. Subsequently a new non-executive chairman will be hired, as well as a new managing director and a third non-executive director.
Speaking about the merger, Auzex chairman Chris Baker added: "This transaction delivers an outstanding outcome for all parties, it has been complex to structure and negotiate due to requirements of both parties ensuring the interests of all shareholders was recognised and that they benefited equally from the outcome.
“This merger will provide the opportunity to unlock significant value for both parties and ensure the fast-track development of the Bullabulling Gold project at a critical time in its development."
