Minotaur Exploration (ASX: MEP) and Breakaway Resources (ASX: BRW) have announced a binding agreement under which Minotaur will acquire all of the issued shares in Breakaway by way of an off-market agreed takeover offer.
Breakaway shareholders will receive one (1) new Minotaur share for every ten (10) Breakaway shares held. Based on Minotaur’s 30-day volume weighted average price (VWAP) of $0.124, the offer values Breakaway at $5.4 million or $0.0124 cents per share.
Breakaway is trading at $0.012 today.
The transaction has been unanimously recommended by the Breakaway board of directors in the absence of a superior offer.
The merged group will have a pro-forma market capitalisation of approximately $19 million and a strong balance sheet with cash and listed investments of approximately $10 million (using cash balances as at 30 June) and no debt.
Minotaur will look to start work in October on the Leinster project in WA and Eloise in Queensland if the takeover is approved.
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