Auzex Resources: Interim board established for Bullabulling Gold Project

Auzex Resources (ASX: AZX) is progressing the proposed merger with GGG Resources (ASX: GGB), with an interim board established for the Bullabulling Gold Project.

Comprised of three Auzex directors and three GGG directors, the board will assume day-to-day responsibilities for Bullabulling.

The proposed merger would see Auzex and GGG form a new company, Bullabulling Gold, which would own 100% of the Bullabulling project.

The merger is designed to establish a unified local management team, taking advantage of cost efficiencies associated with a single corporate entity, and would allow the project to be accelerated through feasibility to development.

In addition, the increased scale should provide additional liquidity and scope for re-rating.

Bullabulling Gold will be listed on both the ASX and AIM to allow greater access to global capital markets.

Auzex directors stepping into the interim board are non-executive chairman Chris Baker, managing director John Lawton and director of operations Dr Greg Partington.

From GGG, managing director Jeff Malaihollo and non-executive directors Nigel Clark and Michael Short have joined the interim board.

Bullabulling gold project

The Bullabulling project, located 70 kilometres southwest of Kalgoorlie in Western Australia, has a resource base of 2.6 million ounces.

A resource update is scheduled for February 2012, with assays from the Phase 2 drilling program, completed in December, being received.

Meanwhile, a Scoping Study released on December 19 identified a substantial gold project capable of producing about 230,000 ounces of gold per annum over 10 years.

It showed the potential for cost improvements at the operating and capital cost levels that would enhance the project economics.

Auzex, GGG merger

Bullabulling Gold Limited has been incorporated and is due to be listed on the ASX in March 2012.

Auzex has completed the demerger of its non-Bullabulling assets into a new public unlisted company, Auzex Exploration, while GGG will re-domicile to the ASX.

A search is underway for an independent chairman and a managing director to head up the new company.

The implementation date for the merger is proposed for March 27, 2012.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24376/auzex-resources-interim-board-established-for-bullabulling-gold-project-24376.html