On 26 August 2019, ASX listed Echo Resources Limited, an Australian gold exploration company, and ASX listed Northern Star Resources Limited, an Australian gold producer, announced that they have entered into a Bid Implementation Agreement. Under the Agreement, Northern Star will offer to acquire all issued and outstanding ordinary shares in Echo Resources pursuant to an off-market takeover bid (Offer).
Under the terms of the Offer, each shareholder of Echo Resources will receive a cash offer of A$0.33 for every share held. The Directors of Echo Resources have unanimously recommended that shareholders accept the Offer in the absence of a superior proposal. Northern Star held a 21.7% interest in Echo Resources as at the date of the announcement. Echo Resources’ focus is on the Yandal Gold Project, which is located in the Yandal greenstone gold belt in Western Australia.