Crescent Gold: Focus Minerals acceptances pass 70%, free of defeating conditions

The takeover of Crescent Gold (ASX: CRE, TSE: CRA) by Focus Minerals (ASX: FML) is moving towards a conclusion, with Focus now holding 70.6% of Crescent.

Earlier in the week Focus announced that the off-market takeover was now free of defeating conditions.

Focus has already accelerated the issue of consideration shares to within three business days, to those shareholders who accept the offer on or before Wednesday 31 August 2011.

The Focus interest in Crescent would increase to around 78% 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/18996/crescent-gold-focus-minerals-acceptances-pass-70-free-of-defeating-conditions-18996.html