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.