Golden Energy and Resources shells out A$67 million for 10% of Aussie gold miner
INDONESIAN coal miner Golden Energy and Resources (GEAR) has agreed to subscribe for 36 million new shares in Australia-listed gold miner Westgold Resources Limited for A$67.86 million (S$69.28 million).
This will give GEAR a 10 per cent stake in the enlarged share capital of Westgold, turning GEAR into one of Westgold's largest shareholders.
GEAR will also have the right to nominate a person to be appointed as a director of Westgold.
The subscription shares will be issued in three tranches to GEAR at a price of A$1.885 - representing a 3.3 per cent premium to the volume-weighted average price of A$1.8248 for Westgold shares on Nov 29. The third and final tranche is expected to be completed on or before Jan 31 next year.
GEAR group chief executive Fuganto Widjaja said that the investment into Westgold is a strategic move to widen its coal-focused mining business to include counter-cyclical commodities.
The proposed subscription will be fully funded by GEAR's existing loan facility and internal resources.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
TikTok suspends new app’s reward programme amid EU concerns
Hong Kong spot crypto ETFs to start trading next week
Cordlife substantial shareholder Nanjing Xinjiekou still mulling over offer to buy over remaining shares
Nvidia agrees to acquire Israeli AI software provider Run:ai
HSBC says growing Chinese wealth fuels client investments in US
Unilever's India quarterly profit disappoints