Doray Minerals (ASX:DRM) will acquire Mutiny Gold (ASX:MYG) with an off-market takeover offer of 1 new Doray share for every 9.5 Mutiny shares held.
Offer values Mutiny at $0.054 per share.
Major Mutiny shareholders have entered into pre-bid acceptance agreements with Doray in respect of 18.68% of Mutiny's shares.
The Mutiny board has unanimously recommended the offer.
Mutiny security holders will hold up to 33% of the combined group (on a fully diluted basis).
90% minimum acceptance condition.
The proposed merger creates a portfolio of complimentary high-grade production, development and exploration assets.
Forecast production is around 160,000oz AuEq per year from FY2016.
