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NORTHERN STAR RESOURCES LTD — M&A Activity 2018
Dec 30, 2018
65447_rns_2018-12-30_a6ff656e-51c1-4642-8f55-df9eb816f65f.pdf
M&A Activity
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ASX ANNOUNCEMENT
31 December 2018
Australian Securities Exchange Code: RND
Board of Directors:
Mr Otakar Demis Chairman and Joint Company Secretary
Mr Anton Billis Managing Director
Mr Gordon Sklenka Non-Executive Director
Mr Roland Berzins Joint Company Secretary
RAND REJECTS NORTHERN STAR'S OFFER
Rand Mining Ltd ( Rand or the Company ) (ASX code: RND) refers to the announcement on 13[th] November 2018 by Northern Star Resources Limited ( Northern Star ) (ASX code: NST) in relation to Northern Star's unsolicited $37.5 million offer for Rand Mining and Rand Exploration’s 12.25% interest in the East Kundana Joint Venture ( EKJV ) ( Offer ) and its unsolicited offer for Tribune Resources Ltd's 36.75% interest in the EKJV.
Rand further refers to the newspaper article published in the Australian newspaper on Thursday, 27 December on the Company’s intension with respect to the Northern Star Offer and we note our response on the matter of the Offer as follows.
The Rand Board of Directors ( Board ) has resolved to reject the Offer and has communicated this to Northern Star.
The Board has concluded that the Offer significantly undervalues Rand's interest in the EKJV.
In reaching its conclusion, the Board considered qualitative factors, such as the timing of the Offer, which the Board considers to be opportunistic in light of the Takeovers Panel's declaration of unacceptable circumstances in relation to the affairs of its major shareholder Tribune Resources Ltd, and financial advice provided by its financial adviser, Argonaut.
The financial advice considered by the Board analysed Rand's interest in the EKJV by way of comparable company and transaction analyses (using a variety of listed gold producers and gold transactions determined by Argonaut to be comparable to the Company's circumstances) and discounted cash flow modelling.
Media enquiries:
Andrew Rowell
Cannings Purple
Ph: +61 8 6314 6314
Gordon Sklenka Edward Rigg Rand Mining Ltd Argonaut
E: [email protected] Tel: +61 8 9224 6804 Ph: +61 8 9474 2113