Auzex Resources (ASX: AZX) shareholders are set to receive 0.909 Bullabulling Gold shares for every one scheme share held, following completion of cash balancing calculations.
The Cash Balancing Amount is the amount required to be subscribed by partner GGG Resources to Auzex to ensure that the net cash assets of both companies are equal on the effective date.
This has been calculated at $4.7 million.
Under the cash balancing adjustment, GGG will subscribe for 18.5 million shares in Auzex at $0.2535 per share, a 10% discount to Auzex’s five day volume weighted average price up to March 14.
Provided the Scheme is approved, the subscription will occur after the effective date, which is scheduled for March 28, and before the record date, expected on April 5.
Upon completion of the merger between Auzex and GGG, it is expected about 289 million Bullabulling Gold shares will be on issue.
The companies are forecast to have a combined cash balance net of trade creditors of $9.5 million at March 31.
Bullabulling Gold progress
Auzex and GGG made big steps at the Bullabulling Gold Project in February, receiving approval from the Queensland Supreme Court for the Scheme Booklet for the proposed merger and an increase in the gold JORC Resource to 3.2 million ounces.
The updated global resource for Bullabulling comprises 102.8 million tonnes at 0.96 grams per tonne gold, and includes 2.1 million ounces in the Indicated category.
Meanwhile, Bullabulling Gold Limited has been incorporated and is expected to list on the ASX this month.
Auzex has completed the demerger of its non-Bullabulling assets into a new public unlisted company, Auzex Exploration, while GGG will re-domicile to the ASX.