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Conquest, Catalpa cleared to merge

Conquest, Catalpa cleared to merge

Shareholders in Conquest Mining (ASX:CQT) and Catalpa Resources (ASX:CAH) have approved approved plans to merge the two companies into new gold miner Evolution Mining.

In each case, investors holding 99% of voting power agreed to the proposal to conduct a merger of equals and then buy Newcrest Mining's (ASX:NCM) interests in two Queensland gold projects in exchange for a stake in the new company.

Evolution Mining plans to conduct a $150 million entitlement offer after completion of the merger. The combined company would have a market capitalization as of end-FY11 of around $1.1 billion.

Catalpa and Conquest first announced plans for the merger in June, revealing that the combined group would have forecast production of up to 450,000 ounces of gold equivalent by 2013.

Evolution Mining will have three board members from Catalpa, three from Conquest and two from Newcrest.

Future Evolution Mining managing director Bruce McFadzean (currently Catalpa's managing director) said the new entity will “be a top five Australian gold producer with the scale, diversified asset base and management team to be a real force in Australia's gold sector.”

CAH shares grew 1.16% on Friday to $1.740, CQT gained 2.97% to $0.520, and NCM dipped 0.16% to $36.500.

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Tags Mergers and acquisitionsminigoldCatalpa ResourcesASX:CAHASX:CQTConquest MiningASX:NCM

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