Crescent Gold: Focus Minerals off-market offer now free of defeating conditions

The takeover of Crescent Gold (ASX: CRE, TSE: CRA) by Focus Minerals (ASX: FML) has taken another step towards completion with the offer now free of defeating conditions.

Focus earlier in the month said that the company will accelerate the issue of consideration shares to within three business days, to those shareholders who accept the offer on or before Wednesday 31 August 2011.

Focus currently has a 69% interest in Crescent, which would increase to around 77% if Focus converted up to $13 million worth of Crescent convertible notes.

The Crescent board unanimously recommends the offer in the absence of a superior proposal, with Focus considering that it is highly unlikely that a superior competing bid will eventuate - due to the current control.

The new Focus Minerals

The transaction will allow Focus to become one of Australia's top five gold producers, with targeted annual production of 230,000 ounces.

The JORC Resource base of the new Focus would be 4.3 million ounces, with strong growth potential across two major Western Australian mining regions.

Highlighting the potential of Crescent for Focus, is that Crescent last month announced gold production forecasts exceeded guidance by 8.5% in the June quarter, producing 23,871 ounces for a gross value of around US$36 million, based on a spot of US$1500.

Crescent has recently also been receiving some encouraging results from diamond core drilling at Apollo, Aurora and Calypso gold resources, which form part of the broader Laverton gold project.

During the June quarter Crescent announced a maiden probable gold reserve of 54,000 ounces near surface at Apollo Deposit, where mining operations have been fast tracked and are scheduled to commence in the September quarter of 2011.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18950/crescent-gold-focus-minerals-off-market-offer-now-free-of-defeating-conditions-18950.html