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Gascoyne Resources (ASX:GCY) - CEO and Managing Director, Richard Hay (left) & Chief Financial Officer, David Coyne (right)
CEO and Managing Director, Richard Hay (left) & Chief Financial Officer, David Coyne (right)
Source: Mining News
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  • Gascoyne Resources (GCY) and Firefly Resources (FFR) enter a binding scheme implementation deed to merge
  • Gascoyne will acquire 100 per cent of Firefly’s shares with FFR shareholders set to receive 0.34 GCY shares for every Firefly share held
  • According to the companies, the partnership will create a leading gold production business that will integrate Firefly’s Yalgoo Project with Gascoyne’s Dalgaranga production plan
  • Both companies intend to demerge their assets into a new company named Firetail Resources which will ultimately list on the ASX
  • Gascoyne is up 2.7 per cent and trading at 38 cents while Firefly is up 20 per cent and trading at 12 cents at 12:47 pm AEST

Gascoyne Resources (GCY) and Firefly Resources (FFR) have entered a binding scheme implementation deed to merge.

Gascoyne will acquire 100 per cent of Firefly’s shares with FFR shareholders set to receive 0.34 Gascoyne shares for every Firefly share held.

The Firefly Board has unanimously recommended that its shareholders vote in favour of the scheme as it believes it is in the best interest of its shareholders.

According to the companies, the partnership will create a leading gold production and development business that will integrate Firefly’s Yalgoo Project with Gascoyne’s Dalgaranga production plan.

Upon completion, Gascoyne Managing Director and CEO Richard Hay will continue leading the company with Firefly Managing Director and CEO Simon Lawson to join the board as Non-Executive Director.

“This merger is a very exciting opportunity for Gascoyne and its shareholders and represents a key step forward in Gascoyne’s strategy of delivery value by extending mine life and increasing annual production at Dalgaranga,” Richard said.

Both companies intended to undertake a demerger of their copper-gold and lithium assets into a new energy metals-focused exploration company to be names Firetail Resources which will ultimately list on the ASX.

This new entity is expected to have a market cap of $159 million, cash and cash equivalents of $33 million and bank debt of $17.5 million as of March 31, 2021.

“The combination of Gascoyne and Firefly is a compelling opportunity for value-creating, logical consolidation in the Murchison district, providing a clear pathway to accelerate and de-risk the development of the Yalgoo Gold Project by leveraging Gascoyne’s mining expertise and high-quality processing facility at Dalgaranga,” Simon commented.

Gascoyne was up 2.7 per cent and trading at 38 cents while Firefly was up 20 per cent and trading at 12 cents at 12:47 pm AEST.

FFR by the numbers
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