Astral Resources (ASX:AAR) and Maximus Resources (ASX:MXR) to Merge via Takeover Offer

Merger Overview

Astral Resources NL (ASX:AAR) and Maximus Resources Limited (ASX:MXR) have announced a recommended off-market takeover offer to merge, forming a leading Western Australian gold developer with combined Mineral Resources of approximately 1.8Moz.

Offer Details

Under the takeover offer, Astral will provide one new Astral share for every two Maximus shares, valuing Maximus at approximately $31 million with an offer price of $0.073 per Maximus share. This represents significant premiums: 61% above Maximus’ last closing price, 67% above its 30-day VWAP, 48% above its 12-month high, and 175% above its 12-month low.

Transaction Benefits

The merger offers Maximus shareholders attractive liquidity, exposure to Astral’s advanced Mandilla Project, and increased financial strength with Astral holding approximately $25 million in cash and no near-term capital raising requirements. The combined entity is expected to have a market capitalisation of around $200 million and significant re-rating potential.

Executive Comments

Managing Director of Astral, Marc Ducler, commented, “The combination with Maximus provides a compelling opportunity to generate value for both sets of shareholders by creating a company with increased size, scale and market relevance.”

Managing Director of Maximus, Tim Wither, added, “We are pleased that, in addition to realising an attractive premium, the transaction provides Maximus shareholders with the opportunity to become shareholders of a company with significantly increased scale, balance sheet and team capable of leveraging the potential of the Mandilla project with the benefit Maximus’ neighbouring resources and exciting regional exploration targets.”

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Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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