CZR Resources to buy Zuleika Gold for $44.8M
- CZR Resources has launched a recommended off-market takeover bid to acquire all shares of Zuleika Gold.
- The all-scrip offer values Zuleika Gold at approximately $44.8 million, representing a 42.3% premium to its last closing price.
- The companies stated the combination will lower corporate costs and combine balance sheets to fund Western Australian exploration projects.
CZR Resources (ASX:CZR) has executed a bid implementation deed to acquire Zuleika Gold (ASX:ZAG) in an all-scrip transaction valuing the target at approximately $44.8 million.
The offer price of $0.427 per share compared to Zuleika Gold’s last closing price of $0.030 on June 25.
"The proposed acquisition of Zuleika and its highly complementary suite of assets represents a stepchange in the growth trajectory of CZR, and the strengthened balance sheet of the combined entities provides an excellent platform for further growth," said the CZR board.
Under the agreed terms, Zuleika Gold shareholders will receive 0.1742 CZR Resources shares for every one Zuleika Gold share they hold.
The company stated that the merger will combine their Western Australian asset portfolios to provide regional presence and operational efficiencies.
Following the announcement, the CZR Resources share price was unchanged at $0.20.
The transaction remains subject to a minimum 90% acceptance condition alongside regulatory and shareholder approvals before it can be finalised.
