Firefly Resources

A$160m merger with Gascoyne Resources

June 2021

On 16 June 2021 Firefly Resources Limited (“Firefly”) and Gascoyne Resources Limited (“Gascoyne”) announced they had entered into a binding Scheme Implementation Deed, pursuant to which the two companies will merge by way of Scheme of Arrangement with Gascoyne to acquire 100% of the fully paid ordinary shares In Firefly. Firefly shareholders will hold approximately 32% of the merged entity, which will trade as Gascoyne Resources Ltd and is estimated to have a pro forma market capitalisation of $159.0 million, cash and equivalents of $33.0 million and bank debt of $17.5 million for a net cash position of $15.5 million as at 31 March 2021.

Firefly (ASX: FFR) is an ASX-listed focused gold exploration company with a portfolio of emerging projects located in some of Western Australia’s premier mining and exploration jurisdictions. The company’s flagship asset is the Yalgoo Gold Project (“Yalgoo Project”) which contains a JORC compliant gold resource of 196,000oz. Gascoyne (ASX:GCY) is an ASX-listed gold mining and exploration company, based in Western Australia. Its flagship asset is the Dalgaranga Gold Project located approximately 65km from Mt Magnet.

The Merger will combine two gold companies with complementary assets in the Murchison region of Western Australia, unlocking a number of synergies by leveraging Gascoyne’s gold mining expertise and available processing infrastructure at Dalgaranga, for the benefit of Firefly’s highly prospective suite of assets including its Yalgoo Project which is located only 110km by road from Dalgaranga.

The Merger is unanimously supported by the Board of Firefly, with the transaction subject to customary conditions including approval being obtained from Firefly Shareholders. The Shareholder meeting is expected to be held in September 2021.

Azure Capital acted as financial adviser to Firefly on the transaction.