Auzex Resources (ASX: AZX) is moving closer to achieving its goal of creating a new company to be known as Bullabulling Gold, which will be listed on the ASX and AIM markets - through a merger with GGG Resources (ASX: GGB, LON: GGG).
Both Auzex and GGG hold a 50% stake in the Bullabulling Gold Project which hosts a JORC Resource of 2.6 million ounces of gold, (with the new company to hold 100% of this asset).
Auzex has now received Queensland Supreme Court approval for the Scheme Booklet for the proposed merger by scheme of arrangement, with a meeting seeking Auzex shareholder approval to be held in March.
The booklet included some major support for the merger, with the independent expert’s report by BDO Corporate Finance concluding that the advantages of the merger outweigh its disadvantages, and therefore the deal is in the best interests of Auzex shareholders.
Auzex has already completed the demerger of its non-Bullabulling assets into a new public unlisted company, Auzex Exploration, while GGG will re-domicile to the ASX.
Bullabulling: plus 200,000 gold ounce per annum potential
Currently Bullabulling has a JORC Resource of 78.8 million tonnes at 1.03 grams per tonne (g/t) for 2.6 million ounces of gold based on a 0.5g/t gold cut-off.
Drill results to date have continued to confirm the resource and geological model, with about 99% of drill holes intersecting gold mineralisation.
A Scoping Study has identified a substantial gold project capable of producing about 230,000 ounces of gold per annum over a 10 year mine life. The study showed the potential for cost improvements at the operating and capital cost levels that would enhance the project economics.