UK-based gold exploration and development company Stratex International has signed a non-binding heads of agreement (HoA) to acquire Australia's Crusader Resources.
Crusader is a Brazil-focused specialised mineral producer dealing in precious metals and bulk commodities.
The assets of Crusader comprise two advanced gold projects in Brazil, including Borborema and Juruena, with combined JORC-compliant resources of 2.7Moz Au, and Posse Iron Ore Mine.
Pursuant to the agreement, Crusader shareholders will receive 6.6 Stratex ordinary shares for every Crusader share held.
Stratex International CEO Marcus Engelbrecht said: “We are delighted to have entered into this agreement with Crusader, which, if successfully implemented, will see Stratex acquire substantial and highly prospective gold projects to add to our already exciting asset portfolio.
“This development is aligned with our long-term strategy of becoming a significant gold production, development and exploration company, and we believe it has the potential to provide significant value to our shareholders and take us a step closer to operating highly deliverable gold mines.”
The deal valued Crusader at around A$54.2m (£31.1m), with each Crusader share valued at £0.1.
Upon completion of the transaction, Crusader shareholders will hold around 81% of the enlarged company.
Crusader Resources chairman Stephen Copulos said: “The proposed transaction should, if implemented, provide for an uplift in value for Crusader shareholders and with Stratex’s existing cash balance of over A$12m, funding to progress the Borborema and Juruena projects.
“The combined company will be able to leverage off its significant balance sheet, strong portfolio of gold development and exploration assets and highly regarded combined management team to move forward to project development in the near-term.”
The completion of the transaction is subject to successful due diligence, the agreement of definitive offer documentation and court, regulatory and shareholder approvals, and re-admission of Stratex’s enlarged issued share capital to trading on the AIM market of the London Stock Exchange.
Image: Aerial view of Juruena. Photo: courtesy of Crusader Resources.