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Auzex Resources: Merger with GGG Resources progresses with Operational Company established

Auzex Resources (ASX: AZX) and GGG Resources (ASX: GGB; AIM: GGG) merger will combine the 2.6 million ounce Bullabulling Gold project, (previously a 50:50 joint venture), under a single corporate entity to be named Bullabulling Gold.

The new entity will be Australian domiciled and listed on the ASX and AIM markets.

The merger moved another step towards completion today with the establishment of an Operational Company named BBG Management Ltd.

BBG Management will have three directors from Auzex being Chris Baker, John Lawton and Greg Partington, along with three directors from GGG Resources, Nigel Clark, Jeffrey Malaihollo and Michael Short.

A Shareholder Agreement and Management Agreement have been executed by all parties, with existing contracts related to the Bullabulling Project will be assigned to BBG Management, with future contracts to be negotiated and entered into directly with BBG Management.

Importantly - Bullabulling Gold Limited has been incorporated and the Implementation Agreement between Auzex and GGG Resources has now been signed.

The search for a new non-executive chairman for the proposed merged entity is underway, with an independent executive search firm appointed.

In the UK, preparations for the Scheme of Arrangement documentation and EGM Notice have begun and counsel has been appointed.

In Australia, the preparation of the EGM Notice for the divestment of Auzex’s non-Bullabulling assets has started.

Operationally, BBG Management has appointed consultant mining engineer John Barton to lead the completion of the Feasibility Study.


The merger outcome
 
The deal will create an advanced exploration / pre development gold-focussed company, which will wholly own the Bullabulling Gold project - which is strategically located 65 kilometres south-west of Kalgoorlie in Western Australia.
 
The merged entity’s pro-forma diluted market capitalisation post completion will be around A$95 million.  Auzex will also demerge the company's non-Bullabulling assets.

 

Auzex will be presenting at the Proactive Investors One2One Forums - Sydney, on Wednesday the 21st September 2011, CLICK HERE to register.