PERTH (miningweekly.com) – ASX-listed junior AuStar Gold on Friday revealed intentions to make a takeover offer for embattled Centennial Mining.
Centennial Mining went into voluntary administration in March this year, after failing to complete an audit and recapitalization plan.
The administrators of Centennial Mining have received a number of unsolicited approaches from existing creditors, prompting AuStar to enter into its own discussions with the administrators to assess the potential of a takeover.
AuStar is ramping up production from the Rose of Denmark and Morning Star mines, and has exploration assets around Centennial’s A1 mine.
“AuStar has publicly advised that regional consolidation is a logical component of the company’s overall growth strategy. Bringing these assets together has the potential to accelerate growth for all shareholders, as well as deliver economic benefits to the region,” said AuStar executive chairperson Frank Terranova.
“With obvious geographical, geological, mining, processing and administrative synergies, the possible asset combination has the potential to create a platform for sustained growth within Victoria and beyond.”