Baru Resources Ltd Announces Recommended Off-Market Takeover Offer For Argosy Minerals Ltd

Baru Resources Ltd and Argosy Minerals Ltd announced the signing of a Takeover Bid Implementation Deed (Implementation Deed) under which it is proposed that Baru will acquire all of the issued shares of Argosy in a share based transaction by way of an off-market takeover offer. Under the Offer, Argosy shareholders will receive one new Baru share for every one Argosy share held. Baru currently has on issue 49,796,009 shares and Argosy has on issue 126,029,105 shares. Baru will therefore issue 126,029,105 shares as consideration for the acquisition. The Offer values Argosy at $0.038 per share based on Baru’s closing share price on the ASX on July 1, 2013. Baru has cash reserves and other receivables on hand at current date of approximately $3 million, representing a net asset backing of approximately $0.06 per share. The Argosy Board unanimously recommends that Argosy shareholders accept the Offer in the absence of a superior proposal. The takeover is supported by a majority of the Baru board. The transaction would create an entity with net cash and semi-liquid reserves of approximately $3 million held by Baru, combined with the potential of the Argosy graphite project in Namibia. In addition, management expertise will be combined, and those shareholders who hold interests in both Companies will enjoy the synergies of one combined entity.