Brightstar Resources (ASX:BTR) entered a scheme implementation deed to fully acquire Aurumin (ASX:AUN) for AU$0.12 apiece via a scheme of arrangement, according to a Monday filing with the Australian bourse.

The offer represents a premium of 21% to the closing price of the company's shares on July 17, the filing said.

Under the proposed deal, Aurumin shareholders would receive one Brightstar share for every 4.6 Aurumin shares held, the filing added.

The company's board, which holds a 16% stake, recommends that shareholders vote in favor of the scheme in the absence of a superior proposal and an independent expert's conclusion that it is in the best interests of shareholders, the company said.

Brightstar also received firm commitments to raise AU$50 million through the placement of 104.2 million shares, at AU$0.48 per share, a 12.7% discount to the closing price of the company's shares on July 17, the company added.

Proceeds will be used to fund drilling at the company's sandstone project, for feasibility studies, approval, and permitting.

A scheme meeting to approve the scheme is set for mid-October.

Shares of Brightstar Resources fell past 10% in recent Monday trade, while shares of Aurumin rose past 6%.