The Directors of Musgrave continue to unanimously recommend that you REJECT the Westgold all scrip offer of 1 Westgold share for every 5.37 Musgrave shares ("the Offer") and provides the following additional statements in relation to its reasons to reject the Offer.
To REJECT the Offer, you should simply DO NOTHING and take NO ACTION in relation to all documents sent to you by Westgold.
THE WESTGOLD IMPLIED
Since announcement, the Westgold implied Offer price has traded below the Musgrave share price.
We note that as of
Under the Offer, Musgrave shareholders will receive 1 Westgold share for every 5.37 Musgrave shares held, which implied a value of
The table below* illustrates the implied premia represented by the implied Offer price on a 'like for like' basis relative to historical trading prices of Westgold shares and Musgrave shares on the ASX prior to the Announcement Date.
Although many factors affect the price of any given security, if the Offer is not successful or no higher bid for Musgrave emerges, the Musgrave share price may fall below the implied Offer price and trade back at those levels seen prior to the Announcement Date.
For completeness, the Company notes that the Westgold share price has traded in the range of
THE OFFER IS OPPORTUNISTIC GIVEN MUSGRAVE'S POTENTIAL
The Company released the results of its Stage 1 Prefeasibility Study ("Stage 1 PFS") on its
The key metrics of the Stage 1 PFS are described in the table below, which includes the NPV, EBITDA, C1 costs, All in Sustaining Costs and pre-production capital expenditure costs.
The Stage 1 PFS Announcement contains full details of the Stage 1 PFS and readers are encouraged to read that announcement in detail, in particular the material assumptions underpinning the Stage 1 PFS disclosed throughout that announcement and the extensive risks disclosures in section 18 of that announcement (pages 105 - 111), including but not limited to risks relating to capital expenditure costs required to develop the
Cautionary statement:
The production target and forecast financial information referred to in the Stage 1 PFS comprise Indicated Mineral Resources (approximately 77%) and Inferred Mineral Resources (approximately 23%). The production has been scheduled such that <7% by tonnage and <1.7% by gold ounces of the Inferred material is mined and processed in the first year (during the payback period), with the remainder mined through to the end of the mine life. The Inferred material does not have a material effect on the technical and economic viability of the
The production target and forecast financial information referred to in this announcement were first disclosed in the Company's ASX announcement of
*To view detailed analysis, please visit:
https://abnnewswire.net/lnk/S45AY5U6
About
Contact:
Managing Director
+61 8 9324 1061
Associate Director
+61 428 432 025
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