Stratex works towards gold mining growth plan with purchase of Australian firm Crusader Resources

 
Courtney Goldsmith
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A man shows a 10-gram gold ingot which h
The tie-up will help Stratex grow into a significant gold producer (Source: Getty)

Gold miner Stratex is set to buy Australia's Crusader Resources for $54.2m Australian dollars (£31m) as part of a growth push.

Stratex, which is listed on London's Alternative Investment Market (Aim), will acquire Crusader at 18 Australian cents per share, a 56.5 premium on its stock price, dependent on regulatory and shareholder approval.

Crusader focuses on precious metals and bulk commodities in Brazil, where it has more than 12 years of operating experience, including two advanced gold projects with combined resources of 2.7m ounces.

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Marcus Engelbrecht, the boss of Stratex, said the deals aligns with the company's long-term strategy of becoming a significant gold production, development and exploration company.

"We believe [the deal] has the potential to provide significant value to our shareholders and take us a step closer to operating highly deliverable gold mines.”

This is the first move by Stratex's new management to grow the company through acquisitions. Engelbrecht, who joined the miner last year, was previously chief executive of Archipelago Resources, which he grew into the largest mining company on Aim in 2013 before it went private.

Crusader’s chairman, Stephen Copulos, said: "The combined company will be able to leverage off its significant balance sheet, strong portfolio of gold development and exploration assets and highly regarded combined management team to move forward to project development in the near-term.”

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