Proposed Toronto listing and merger with Golden Harp Resources Inc to form Americano Mining Inc.

113 Pages·2017·1.54 MB·English

by  Microsoft Office User

ASX Announcement
19 M arch 2018

PROPOSED TORONTO LISTING AND MERGER WITH GOLDEN HARP
RESOURCES INC TO FORM AMERICANO MINING INC.

Beadell Resources Limited (Beadell or Company) is pleased to announce that a definitive agreement
has been reached with Golden Harp Resources Inc. (Golden Harp) (TSXV:GHR-H.V) of Canada to
merge the companies via an Australian scheme of arrangement transaction. The new merged entity,
to be named Americano Mining Inc., will apply to be listed on the Australian Securities Exchange
(ASX) as well as retain its listing on the TSX Venture exchange (TSXV).
A Canadian listing is important for the company as the TMX (including the Toronto Stock Exchange
and the TSXV) is considered a global leader for mining companies. The listing will improve exposure
to North American capital markets with increased liquidity and analyst coverage. It is a natural
progression for Beadell as there is an extensive peer group of Latin American focused gold
exploration, development and production companies
Beadell has determined that the proposed merger is the preferred means of achieving a listing of the
Company’s shares on the TSXV as the Company continues to grow towards its goal of becoming an
Americas focussed intermediate gold producer. The proposed merger is subject to, among other
things, approval by Beadell and Golden Harp shareholders, court approval and regulatory (including
FIRB) approvals.
The principal terms of the merger include:
 Golden Harp will undertake a private placement of common shares. The placement will raise
approximately CAD$4 million. The main subscribers to the placement will be Sprott Inc.
(Sprott), certain investment entities managed by Sprott and entities associated with the Lundin
family.
 Golden Harp will seek shareholder approval for a 1 for 11 consolidation of its issued capital,
the issue of the scheme consideration and certain other matters related to the merger. Golden
Harp shareholders holding 41.2% of Golden Harp shares have entered voting support
agreements pursuant to which they have undertaken to vote in favour of the required Golden
Harp resolutions.
 Beadell shareholders, via a Scheme of Arrangement, will exchange 14.25 fully paid ordinary
Beadell shares for one post consolidation Golden Harp common share (either in the form of
CHESS Depositary Interests (CDIs) or, if a shareholder elects, Golden Harp common shares)
such that at the completion of the proposed merger existing Beadell shareholders will hold
approximately 94.5% of the issued capital of Golden Harp.
 The issued capital of Golden Harp at the completion of the proposed merger will be
approximately 92 million shares.
ASX ANNOUNCEMENT
 Golden Harp will be renamed Americano Mining Inc. and will apply for listing on the ASX
through the admission to quotation of the CDIs (which will be subject to the ASX listing and
admission process).
 Once the transaction is complete it is anticipated that Americano Mining Inc. will trade on both
the TSXV and the ASX.
A copy of the scheme implementation deed setting out the full terms of the merger is attached to
this announcement.
The board of Directors of Americano Mining Inc. will be as follows:
Chairman Craig Readhead
o
President & CEO Simon Jackson
o
Non-executive Directors Nicole Adshead-Bell
o
Brant Hinze
Timo Jauristo
Adam Lundin
Mr Adam Lundin will join the existing Beadell Board members on the Board of Americano. He brings
a recognised legacy and years of international finance and capital markets experience to Americano.
Adam started his career at a number of Lundin Group companies around the globe before moving
into finance and ultimately becoming co-lead of Pareto Securities’ highly-successful London office.
He is currently President and CEO of Filo Mining Inc (TSXV:FIL), which owns the Filo de Sol Copper-
Gold-Silver project in the high Andes of Chile and Argentina.
The head office of Americano will remain in West Perth, Western Australia. The Company will also
have an office in Toronto, Canada.
Commenting on the proposed merger, Simon Jackson, Beadell Managing Director and CEO said “We
are pleased to have reached an agreement with Golden Harp that will benefit both companies’
shareholders. It has long been my view that the Tucano mine needs to be listed in Canada along with
the vast majority of South American gold developers and producers. We are delighted to have
received the support of Sprott and the Lundin family as they become new shareholders of
Americano. These new shareholders bring extensive market following and experience to the Tucano
story and we look forward to growing Americano into an intermediate gold producer. I am also very
pleased that Adam Lundin has agreed to join the Board of Americano and we look to leveraging his
industry and capital markets experience as we focus on delivering on our long term strategy.
The Beadell board unanimously recommends that Beadell shareholders vote in favour of the merger,
in the absence of a superior proposal and subject to an independent expert’s report concluding that
the merger is in the best interests of Beadell shareholders. Subject to the same qualifications, each
Beadell director will vote (or procure the voting of) all shares they own or control in favour of the
merger.
Based on the current timetable, Beadell intends to implement the merger in the second quarter of
calendar 2018.
ADVISORS
Beadell’s financial advisor is CIBC World Markets Inc.
ASX ANNOUNCEMENT 2
Herbert Smith Freehills acted as Australian legal Counsel to Beadell and Blake Cassels and Graydon
acted as Canadian legal counsel
Golden Harp’s Canadian legal counsel is Armstrong Simpson and Australian Legal Counsel is Hopgood
Ganim.

ABOUT BEADELL
Beadell owns and operates the Tucano gold mine in Amapa State, in the north of Brazil. Tucano sits
within an extensive land package of 2,500km2 of highly prospective, under explored greenstone belt.

FOR FURTHER INFORMATION PLEASE CONTACT:
PERTH TORONTO
Simon Jackson | CEO & Managing Director Graham Donahue | Head of Corporate Development
Greg Barrett | CFO & Company Secretary
T: [phone] [phone]
[email protected]

ASX ANNOUNCEMENT 3
Deed
ASX RELEASE VERSION

Scheme implementation
deed

Golden Harp Resources Inc
Beadell Resources Ltd

QV1 Building 250 St Georges Terrace Perth WA 6000 Australia T [phone] F [phone]
GPO Box U1942 Perth WA 6845 Australia herbertsmithfreehills.com DX 104 Perth
Contents
Table of contents
1 Definitions and interpretation 2
1.1 Definitions .................................................................................................................. 2
1.2 Interpretation .............................................................................................................. 2
1.3 Deed components ...................................................................................................... 2
2 Agreement to proceed with the Transaction 2
3 Conditions Precedent and pre-implementation steps 2
3.1 Conditions Precedent ................................................................................................ 2
3.2 Reasonable endeavours ............................................................................................ 5
3.3 Waiver of Conditions Precedent ................................................................................ 6
3.4 Termination on failure of Condition Precedent .......................................................... 6
3.5 Certain notices relating to Conditions Precedent ...................................................... 8
4 Transaction steps 8
4.1 Scheme ...................................................................................................................... 8
4.2 No amendment to the Scheme without consent ........................................................ 8
4.3 Scheme Consideration .............................................................................................. 8
4.4 Provision of Beadell Share information...................................................................... 9
5 Implementation 9
5.1 Beadell’s obligations .................................................................................................. 9
5.2 Golden Harp’s obligations ........................................................................................ 12
5.3 US security compliance ........................................................................................... 14
5.4 Conduct of business by Beadell .............................................................................. 15
5.5 Conduct of business by Golden Harp ...................................................................... 16
5.6 Appointment of directors .......................................................................................... 17
5.7 Beadell Board recommendation .............................................................................. 17
5.8 Conduct of Court proceedings ................................................................................. 18
5.9 Scheme Booklet content and responsibility statements .......................................... 18
5.10 Beadell Options ........................................................................................................ 19
5.11 Beadell Performance Rights .................................................................................... 19
6 Representations and warranties 19
6.1 Golden Harp’s representations and warranties ....................................................... 19
6.2 Golden Harp’s indemnity ......................................................................................... 19
6.3 Beadell’s representations and warranties ................................................................ 20
6.4 Beadell’s indemnity .................................................................................................. 20
6.5 Qualifications on Beadell’s representations, warranties and indemnities................ 20
6.6 Qualifications on Golden Harp’s representations, warranties and indemnities ....... 20
6.7 Survival of representations and warranties ............................................................. 20
6.8 Survival of indemnities ............................................................................................. 20
6.9 Timing of representations and warranties ............................................................... 21
6.10 No representation or reliance .................................................................................. 21
7 Releases 21
7.1 Beadell and Beadell directors and officers .............................................................. 21
7.2 Golden Harp and Golden Harp directors and officers ............................................. 22
7.3 Deeds of indemnity and insurance .......................................................................... 22
70440879.5 Contents 1
Contents
8 Public announcement 23
8.1 Announcement of the Transaction ........................................................................... 23
8.2 Public announcements ............................................................................................ 23
8.3 Required disclosure ................................................................................................. 23
9 Confidentiality 23
10 Exclusivity 24
10.1 No shop and no talk ................................................................................................. 24
10.2 Fiduciary exception .................................................................................................. 25
10.3 Notification of approaches ....................................................................................... 25
10.4 Cease discussions ................................................................................................... 26
11 Reimbursement Fee 26
11.1 Background to Reimbursement Fee ........................................................................ 26
11.2 Reimbursement Fee triggers ................................................................................... 26
11.3 Payment of Reimbursement Fee ............................................................................. 27
11.4 Basis of Reimbursement Fee .................................................................................. 27
11.5 Compliance with law ................................................................................................ 28
11.6 Reimbursement Fee payable only once .................................................................. 28
11.7 Other Claims ............................................................................................................ 28
11.8 No Reimbursement Fee if Scheme Effective ........................................................... 28
12 Termination 29
12.1 Termination .............................................................................................................. 29
12.2 Termination for breach of representations and warranties ...................................... 30
12.3 Effect of termination ................................................................................................. 31
12.4 Termination .............................................................................................................. 31
12.5 No other termination ................................................................................................ 31
13 Duty, costs and expenses 31
13.1 Stamp duty ............................................................................................................... 31
13.2 Costs and expenses ................................................................................................ 31
14 GST 31
15 Notices 32
15.1 Form of Notice ......................................................................................................... 32
15.2 How Notice must be given and when Notice is received ......................................... 33
16 General 33
16.1 Governing law and jurisdiction ................................................................................. 33
16.2 Service of process ................................................................................................... 34
16.3 No merger ................................................................................................................ 34
16.4 Invalidity and enforceability ...................................................................................... 34
16.5 Waiver ...................................................................................................................... 34
16.6 Variation ................................................................................................................... 35
16.7 Assignment of rights ................................................................................................ 35
16.8 No third party beneficiary ......................................................................................... 35
16.9 Further action to be taken at each party’s own expense ......................................... 35
16.10 Entire agreement ..................................................................................................... 35
16.11 Counterparts ............................................................................................................ 35
16.12 Relationship of the parties ....................................................................................... 35
70440879 Contents 2
Contents
16.13 Remedies cumulative .............................................................................................. 36
16.14 Exercise of rights ..................................................................................................... 36
Schedules
Schedule 1
Notice details 38
Schedule 2
Definitions and interpretation 39
Schedule 3
Golden Harp Representations and Warranties 62
Schedule 4
Beadell Representations and Warranties 64
Schedule 5
Capital details 67
Signing page 69
Attachment 1
Indicative Timetable
Attachment 2
Scheme of arrangement
Attachment 3
Deed poll
Attachment 4
Conditions Precedent certificate
Herbert Smith Freehills owns the copyright in this document and using it without
permission is strictly prohibited.

70440879 Contents 3
Scheme implementation deed
Date
►
Between the parties

Golden Harp Resources Inc
BC0756561 of Suite 3123, 595 Burrard Street, Vancouver, BC V7X
1J1, Canada
(Golden Harp)
Beadell Resources Ltd
ACN 125 222 291 of Level 2, 16 Ord Street, West Perth WA 6005,
Australia
(Beadell)

Recitals 1 The parties have agreed that Golden Harp will acquire all of the
ordinary shares in Beadell by means of a scheme of arrangement
under Part 5.1 of the Corporations Act between Beadell and the
Scheme Shareholders.
2 The parties have agreed to implement the scheme of
arrangement on the terms and conditions of this deed.
This deed witnesses as follows:

70440879 page 1
1 Definitions and interpretation
1.1 Definitions
The meanings of the terms used in this deed are set out in Schedule 2.
1.2 Interpretation
Schedule 2 contains interpretation rules for this deed.
1.3 Deed components
This deed includes any schedule.
2 Agreement to proceed with the Transaction
(a) Beadell agrees to propose the Scheme on and subject to the terms and
conditions of this deed.
(b) Golden Harp agrees to assist Beadell to propose the Scheme on and subject to
the terms and conditions of this deed.
(c) Beadell and Golden Harp agree to implement the Scheme on and subject to the
terms and conditions of this deed.
3 Conditions Precedent and pre-implementation steps
3.1 Conditions Precedent
Subject to this clause 3, the Scheme will not become Effective, and the respective
obligations of the parties in relation to the implementation of the Scheme are not binding,
until each of the following Conditions Precedent is satisfied or waived to the extent and in
the manner set out in this clause 3.
(a) FIRB: one of the following has occurred:
(1) Golden Harp has received written notice under the Foreign
Acquisitions and Takeovers Act 1975 (Cth) (FATA), by or on behalf of
the Treasurer of the Commonwealth of Australia (Treasurer), advising
that the Commonwealth Government has no objections to the
Transaction either unconditionally or on terms that are acceptable to
Golden Harp (acting reasonably);
(2) the Treasurer becomes precluded by the passage of time from making
an order or decision under Part 3 of the FATA in relation to the
Transaction and the Transaction is not prohibited by section 82 of the
FATA; or
70440879 page 2
3 Conditions Precedent and pre-implementation steps

(3) where an interim order is made under section 68 of the FATA in
respect of the Transaction, the subsequent period for making an order
or decision under Part 3 of the FATA elapses without the Treasurer
making such an order or decision;
(b) Scheme Regulatory Approvals: before 5.00pm on the Business Day before
the Second Court Date, all other Regulatory Approvals which are necessary, or
which the parties agree are desirable, to implement the Scheme have been
issued and received (as applicable) (Scheme Regulatory Approvals) and
such Scheme Regulatory Approvals remain in full force and effect in all respects
and do not become subject to any notice, intimation or indication of intention to
revoke, suspect, restrict, modify or not renew the same.
(c) Beadell shareholder approval: Beadell Shareholders (other than Excluded
Shareholders) agree to the Scheme at the Scheme Meeting by the requisite
majorities under subparagraph 411(4)(a)(ii) of the Corporations Act.
(d) Golden Harp shareholder approval of the Consolidation and Scheme
Consideration: Golden Harp shareholders approve:
(1) the Consolidation; and
(2) the issuance of the Scheme Consideration,
at a shareholders meeting by the requisite majorities required by applicable law
and the requirements of the TSXV.
(e) Golden Harp shareholder approval of Private Placement, Golden Harp
Debt Settlement and Golden Harp Option Plan: Golden Harp shareholders
approve:
(1) the Private Placement;
(2) the Golden Harp Debt Settlement; and
(3) the Golden Harp Option Plan,
at a shareholders meeting by the requisite majorities required by applicable law
and the requirements of the TSXV.
(f) Cancellation of Beadell Options: before 8:00am on the Second Court Date,
Beadell Optionholders have entered into deeds with respect to all of the Beadell
Options held by those Beadell Optionholders as contemplated by clause 5.10.
(g) Implementation of Consolidation, Private Placement, Golden Harp Debt
Settlement and Golden Harp Option Plan: Golden Harp has implemented the
Consolidation, Private Placement, Golden Harp Debt Settlement and Golden
Harp Option Plan.
(h) Independent Expert: the Independent Expert issues an Independent Expert’s
Report which concludes that the Scheme is in the best interest of Beadell
Shareholders before the time when the Scheme Booklet is registered by ASIC.
(i) Court approval: the Court approves the Scheme in accordance with paragraph
411(4)(b) of the Corporations Act and an office copy of the Court order is lodged
with ASIC as contemplated by subsection 411(1) of the Corporations Act.
(j) Restraints: between (and including) the date of this deed and 8.00am on the
Second Court Date:
(1) there is not in effect any temporary, preliminary or final order,
injunction, decision or decree issued by any court of competent
jurisdiction or other Government Agency, or other material legal
restraint or prohibition;
70440879 page 3