Northern Star Resources has completed its takeover of Echo Resources, having acquired an interest of 98.14 per cent in the Australian gold company.
This comes after Northern Star took over almost 60 per cent of the company during October, when two Northern Star representatives joined the Echo board.
Now that the compulsory acquisition process is over, Northern Star now has an interest in 100 per cent of Echo’s shares and has given Echo shareholders notice on what will come next.
The Echo board, excluding those nominated from Northern Star, accepted this proposal and Echo managing director and chief executive officer Victor Rajasooriar said the company looks forward to working with Northern Star on the transaction.
“The board of Echo is pleased to recommend the offer to Echo shareholders in the absence of a superior proposal,” Rajasooriar said.
“The offer reflects the strategic nature of Echo’s Yandal gold project, which has a unique combination of mineralisation, untested exploration upside, established processing infrastructure at Bronzewing and a detailed feasibility study.”
Echo shareholders have been given the option to claim Echo shares in respect to their previous holdings, which must be done before December 2021.
“Northern Star has now completed the compulsory acquisition of your Echo shares,” the company stated.
“Northern Star has been registered as the holder of those Echo shares and has provided to Echo the consideration payable for the shares, $0.33 per Echo share.”
“Please note if you do not instruct Echo as to how it should deal with the money payable before December 2021, your unclaimed consideration will be transferred to the Australian Securities and Investments Commission.”
Echo’s main asset is the Yandal gold project in Western Australia’s Kalgoorlie-Boulder region, which comprises more than 1600 square kilometres of tenements in the Yandal greenstone belt.
This belt hosts Northern Star’s Jundee project, which yields approximately 1.8 million tonnes of ore annually.