“The simpler, dual-listed structure will allow us access to broader capital markets and institutional/private investors; eliminate the perceived major shareholder overhang; and attract an expected lower cost of equity capital,” Mawson special committee and board member Bruce Griffin said in a statement.
The deal comes as the gold mining industry sees more of a trend towards consolidation, with companies merging to achieve economies of scale, reduce operational costs, and enhance their market position. Griffin suggests the merger of Mawson and Southern Cross Gold fits this trend, with widespread shareholder support in Canada and overseas to simplify the partners’ respective corporate structures.
Under the Australian scheme of arrangement, Mawson will acquire the other half of Southern Cross’ shares it doesn’t already own. Southern Cross shareholders will receive a 50.4% equity stake in the new company. This merger aims to…
