Astral Resources (ASX:AAR) has fired a seven cent-a-share non-binding takeover bid at Kambalda neighbour Maximus Resources (ASX:MXR) as the Perth-based gold junior looks to extend its Eastern Goldfields presence.

The approach, which is all-scrip and off-market, would create a new, stronger Kambalda gold miner boasting a nicely stocked resources inventory of around 1.8Moz.

Astral alone carries more than 1Moz of gold across its Mandilla and Feysville projects located near the Goldfields mining town and has been sniffing around for expansion or growth opportunities for some time.

The miner considers the deal a “compelling opportunity for Maximus shareholders.” It’s hard to argue against that either when you compare the 7c offer to Maximus’ last closing price before Christmas: It’s a 56% premium on the 4.5c share price.

“The proposed offer price represents a value of $91/oz based on the current Maximus published JORC-compliant mineral resources estimate,” Astral today explained.

Astral shareholders didn’t seem convinced by the takeover move today, with stocks shedding around 8% value through to close on Monday.

Heading the other way, Maximus leapt 31.1% to trade at 5.9cps.

Whether shareholders like the deal or not, Astral has already found itself a slice of the Maximus pie; at the same time it stepped forward with the 7c-a-share takeover proposal, the expansion-minded Perth miner acquired approximately 85.5 million Maximus shares through deals with Beacon Minerals and Colin Petroulas.

This purchase gives Astral 19.99% in the neighbouring company it’s attempted to woo.

Petroulas and Beacon are still in the mix too with around 16% between them.

Elsewhere in Astral’s future into the new year, the company is awaiting a PFS on the back of a scoping study that estimated it would cost $191 million (and a sustaining cost of $1,648/oz) to get the 100,000ozpa Mandilla mine running for 10 years.

Should the takeover not go through for whatever reason, Astral can still easily lean on its 1.27Moz of gold at Mandilla as well as Feysville’s 1.46Moz (at 1.1g/t) trove.

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