Beadell Resources Limited

Great Panther Completes Acquisition Deal of BDR: Beadell Resources Limited (ASX: BDR) is into gold mining. The company is an owner and operator of the Tucano Gold Mine, located in the Amapá state, which is in northern Brazil. Tucano has Mineral Resources of approximately 3.2 million ounces and reserves of approximately 1.3 million ounces. It is a highly prospective contiguous gold exploration tenement.
 
On 18 February 2019, the company announced that the shares of BDR will be suspended from official quotation on ASX effective from same day, in accordance with Listing Rule 17.2, following lodgement of the Supreme Court of Western Australia orders with the Australian Securities and Investments Commission (ASIC), approving the scheme of arrangement by which Great Panther Silver Limited is acquiring all of the issued shares in BDR.
 
Given the scenario and knowing the fact that Beadell Resources has been suspended under current circumstances in view of the implementation deed, the stock that witnessed a fall of about 92% in last five years and rise of 30% in last three months has been under shareholders’ radar lately. Under the Implementation Deed, new Great Panther Shares have been allotted (0.0619 New Great Panther Shares for each Scheme Share held) to eligible BDR shareholders. The option to electing a sale agent was applicable till February 2019; and the non-eligible and electing small shareholders are to receive shares of proceeds from Sale Facility as per the company’s December announcement. Looking at the prices at which BDR has traded, and fallen down, the scheme appeared to give a better prospect, considering the future for the Great Panther group.
 
The Great Panther has Topia mine with decent mineral resources, and Beadell is expected to add to the company’s portfolio which might enhance the growth prospects. However, this has come with an associated risk of trading of new stocks at the global exchanges and not on ASX any longer. Eligible Investors who may be comfortable in having shares on international platforms may evaluate better share trading scenario in the long run.
 
On March 05, 2019, the company confirmed that it has implemented the scheme of arrangement with its shareholders, which was approved by its shareholders on 12 February 2019 and the Supreme court of West Australia on 15 February 2019. This resulted in Beadell becoming a wholly owned subsidiary of Great Panther Mining Limited. The new shares will now trade on the TSX and the NYSE.  Meanwhile, Franklin Resources, Inc. and its affiliates ceased to be a substantial holder of Beadell Resources Limited since February 18, 2019.
 
Importantly, BDR’s shares stopped trading on ASX on February 18, 2019 and are expected to be delisted on March 6, 2019. The stock of Beadell Resources last traded on ASX at $0.065, with a market capitalisation ~ $1.67 billion as of February 18, 2019.
 

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