Sign up Australia
Proactive Investors - Run By Investors For Investors

Echo Resources strengthens gold portfolio via Metaliko Resources takeover

Echo Resources (ASX:EAR) has closed the off-market takeover offer for Metaliko Resources (ASX:MKO) by acquiring 94.88% shares in Metaliko.
Echo Resources strengthens gold portfolio via Metaliko Resources takeover
Metaliko will become a wholly owned subsidiary of Echo

Echo will now send compulsory acquisition notices to acquire all remaining Metaliko shares not accepted in the takeover bid in accordance with the Corporations Act.

Upon completion of this process, Metaliko will become a wholly owned subsidiary of Echo.

The takeover is expected to deliver significant benefits to Echo as Metaliko owns the 2 million tonnes per annum Bronzewing processing facility (within Metaliko’s Yandal Gold Project).

The Yandal Gold Project is located in the North Eastern Goldfields of Western Australia.

Echo can combine this project with its Julius Gold Deposit containing over 200,000 gold ounces in the Yandal belt, one of Australia’s most prolific gold belts.

A scoping study completed in June 2016 for Julius (at a price of A$1,600 for an ounce of gold) delivered an EBITDA of $47 million within a life of mine of 2 years.

Combining the established high quality mineral resources at Julius with the Bronzewing processing facility can provide a clear and low-cost development pathway to production.

Metaliko shares will be suspended from trading on the ASX and delisted in the coming weeks in accordance with the ASX Listing Rules.



Register here to be notified of future EAR Company articles
View full EAR profile View Profile

Echo Resources Ltd Timeline

Newswire
January 24 2017

Related Articles

Picture of gold bars of type mined by Aureus
December 10 2016
MNG Gold has strong financial backing, operational experience and is an existing operator in Liberia.
picture of gold being poured
April 25 2017
Production from Cap- Oeste is now expected to be 186,800 ounces of gold equivalent over the next three years
Lithium-battery.jpg
January 23 2017
Barisan Gold is well into the process of transforming itself into a lithium company

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use