First Au Ltd. has launched an off-market all-scrip takeover bid for Javelin Minerals Ltd., in a deal that will consolidate four gold projects in Western Australia’s Eastern Goldfields.
Under the binding takeover implementation deed, First Au will acquire 100 per cent of Javelin by offering shareholders 11.7647 new First Au shares for every Javelin share held. Adjusted for First Au’s planned 20:1 capital consolidation, the ratio equals 0.5882 First Au shares per Javelin share.
The offer values Javelin at approximately AU$46.5 million on a fully diluted basis, representing an implied price of 11.53 cents per share based on First Au’s 10-day volume-weighted average price up to September 11.
The combined entity will consolidate First Au’s Gimlet and Riverina East assets with Javelin’s Eureka and Coogee brownfields gold projects, creating an expanded regional footprint centred near Kalgoorlie.
The merger establishes a combined mineral resource base totalling roughly 350,600 ounces of gold across the Gimlet, Eureka, and Coogee deposits.
FirstAU Executive Chairman Daniel Raihani said: “This transaction brings together two complementary Western Australian gold portfolios, experienced management teams and aligned shareholder bases under a single platform.
Upon successful completion, existing First Au shareholders will retain a 51.3 per cent stake in the enlarged company, while former Javelin shareholders will hold 48.7 per cent.
The transaction has received the unanimous recommendation of the Javelin board of directors, subject to no superior proposal emerging and an Independent Expert confirming the offer is fair and reasonable. Directors controlling 9 per cent of Javelin’s share capital have pledged to accept the bid under the same conditions.
Javelin Executive Chairman Brett Mitchell said the scrip consideration allows existing shareholders to retain direct exposure to Eureka and Coogee while accessing broader upside across First Au’s Western Australian portfolio.
The share offer is subject to a 50.1 per cent minimum acceptance condition and other conditions.
The offer period will commence on October 30 and end on November 30.
