Brightstar Resources (ASX:BTR) and Aurumin (ASX:AUN) have agreed to non-binding terms for a potential merger under a scheme of arrangement, according to a Monday filing with the Australian bourse.
Under the proposed deal, Aurumin shareholders would receive one Brightstar share for every 4.6 Aurumin shares held, the filing said.
The implied offer price of AU$0.117 per Aurumin share is a 17% premium to the company's last closing price on June 27, the filing added.
The companies said mutual due diligence is underway, and advised shareholders not to take action at this stage.
Shares of Brightstar Resources fell 8%, while shares of Aurumin fell 8% in recent Monday trade.
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