AIC Resources Limited (ASC:AIC) and Intrepid Mines Limited (ASX:IAU) have agreed to merge following the unsuccessful close of the Intrepid take-over offer for AIC on February 5, 2019.
The companies decided to re-engage having recognised the merit in joining forces and the merger will be implemented by way of an off-market take-over offer by Intrepid for all of the issued ordinary shares in AIC.
Intrepid will offer one Intrepid share for every two AIC shares, with Intrepid shareholders set to continue to hold their existing shares in the company.
Strong platform for growth
AIC chairman Josef El-Raghy said: “I am very pleased that AIC and Intrepid have been able to re-engage and agree revised terms for combining the companies.
“This merger creates a strong platform for growth and delivers a dominant land position in the underexplored Plutonic and Marymia region.”
Intrepid chairman Richard Baumfield said: “The combined company will be in a strong position with highly regarded management, a strong balance sheet and exciting gold and copper exploration potential.”
Combined entity of directors
The board of directors will include a combined unit of experienced AIC and Intrepid personnel with a strong focus on growth, led by managing director and CEO Aaron Colleran and chairman Josef El-Raghy.
Both have a track record of success in developing globally relevant mid-tier gold companies and the company will be well-funded with low corporate overheads.
The offer is subject to several conditions including:
The receipt of acceptances under the merger in respect of at least 90% of the AIC shares;
The approval of the issue of the intrepid shares by intrepid shareholders for the purpose of ASX listing rule 7.1; and
The approval of the acquisition by Intrepid of all the AIC shared held by Brahman Pure Alpha Pte Ltd under and on the terms of the offer for the purposes of ASX listing rule 10.1.
- Jessica Cummins