British explorer Stratex officially axes $54m tilt for Crusader Resources
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British gold explorer Stratex has officially scrapped a $54 million offer to buy ASX-listed Crusader Resources a week after Stratex shareholders blocked the bid.
“Crusader has now received written notice from Stratex advising that as a result of the outcome of its general meeting, the Stratex Board wishes to terminate the merger,” Crusader told investors today.
At the meeting shareholders voted to terminate and cease a proposed reverse-takeover of Crusader.
Crusader (ASX:CAS) has since issued a formal notice of termination to Stratex.
Crusader would now progress with earlier — and new — approaches from third parties.
Crusader’s objective is to become a mid-tier gold producer by bringing its two advanced gold projects Borborema and Juruena into production.
Borborema hosts an estimated 2.43 million ounces of gold.
There had been significant advancements on the assets since discussions with Stratex were first initiated, Crusader said.
“The Crusader board believes these developments materially enhance shareholder value,” the company said.
Developments include the $3.2 million sale of the Pose iron ore project in August, approval of key environmental permit for Borborema and exploration potential for a high-grade, significant scale, gold district at Juruena.
Crusader shares remain suspended and last traded at 9.2c, valuing the company at about $28 million.