Wishbone Gold shares suspended on potential reverse takeover

(Sharecast News) - Wishbone Gold announced a significant strategic update on Thursday, including a potential reverse takeover and the suspension of trading on AIM and AQSE. The company said it had signed non-binding heads of terms to acquire Evrensel Global Natural Resources (EGNR), a move that would involve a major restructuring of Wishbone, potentially including asset disposals and subsidiary closures.

It said the restructuring reflected the board's assessment that the company's current Australian operations were not financially viable in the current market conditions.

The proposed acquisition of EGNR would expand Wishbone's operations into a broader range of natural resources sectors, the firm explained, leveraging EGNR's expertise and existing projects in North Africa and Southern Africa.

It said the enlarged group would benefit from EGNR's experienced management team and its focus on trading, investment, and supporting artisanal miners.

The proposed transaction was subject to due diligence, funding, and shareholder approval.

If completed, current EGNR shareholders would own 70% of the combined entity, while existing Wishbone shareholders would retain 30%.

Given the nature of this transaction, trading in Wishbone shares had been suspended pending further announcements.

The company said it would provide further details once binding contracts were entered into and an admission document was published.

"The potential transaction will be transformational for the company and is a really exciting opportunity," said chairman Anthony Moore.

"We believe that Evrensel's skills and expertise in the mining, and resources fields and additional revenue flow and will provide the platform for future growth and opportunity."

Reporting by Josh White for Sharecast.com.