Friday, January 6th, 2023
Kingwest Resources and Brightstar Resources have agreed to merge, entering into a binding scheme implementation deed (SID).
The SID will see Brightstar acquire 100 per cent of Kingwest shares.
The merger will bring together the two complementary Western Australian gold companies to unlock development potential of the Menzies Gold Project, located 130km north of the goldfields of Kalgoorlie.
Kingwest shareholders will receive one Brightstar share for every 0.44 shares held at the scheme record date.
Once the scheme is implemented, Kingwest shareholders will hold approximately 43 per cent and Brightstar shareholders will hold approximately 57 per cent of the merged entity.
“This is a compelling transaction for Kingwest and provides the scale, resource base and processing infrastructure needed to unlock the inherent value of the Menzies Gold Project,” Kingwest chairman Greg Bittar said.
“The transaction is an outstanding opportunity for Kingwest given the ability for Kingwest’s high-grade open-pit ounces to be processed at Brightstar’s infrastructure located in Laverton.
“Kingwest shareholders retain a meaningful stake in the merged group, and we strongly believe in the potential of the combined asset portfolio.”
Brightstar managing director Bill Hobba also expressed his enthusiasm at the developments.
“This is a transformational transaction for Brightstar which marks a refreshed strategic direction for the company,” Hobba said.
“The merger with Kingwest creates a larger, diverse junior gold play and means the company can now start to assess development options utilising a larger resource base and our significant existing infrastructure.”
The board and management of the merged entity will also be refreshed, with Alex Rovira to be appointed as managing director and Hobba retiring from the board.
“In addition to the merger with Kingwest, we are delighted to announce Alex Rovira as our incoming managing director, to guide the company through this important and exciting next stage of growth,” Hobba said.
“We are extremely confident this transaction and leadership appointment will create long-term value for Brightstar and Kingwest shareholders alike.”