AuStar Gold: White Rock Minerals and AuStar Gold step closer to executing merger after first Federal Court hearing

White Rock Minerals Ltd (ASX:WRM) (OTMKTS:WRMCF) and AuStar Gold Ltd (ASX:AUL) are one step closer to merging after the Federal Court of Australia approved the despatch of AuStar's scheme booklet. This decision was made on June 22, with the scheme booklet being a key resource for shareholders who want to learn more about the proposed merger. AuStar shareholders can now have their say on the merger at a share scheme meeting on July 30, where they can vote on the share and option schemes that make up the proposed union. There's still a few key meetings that need to take place before the merger is set in stone: if shareholders approve the schemes, both companies need to attend a second court date and lodge a court order with ASIC. If all goes to plan, the ASX-listers hope to officially become one entity in late August. The merger White Rock and AuStar first publicly floated the merger idea back in early February before updating their proposal in late April. Under a revised merger implementation deed, White Rock intends to acquire 100% of AuStar's issued share capital under a share scheme of arrangement. As consideration for the deal, AUL shareholders will receive 0.78 WRM shares for every AuStar share they hold, resulting in an implied consideration equal to 40 cents per AUL share based on each parties' closing price at the time. Under a separate options scheme, AuStar Gold option holders will receive one new White Rock option for every AUL option they hold, with an exercise price set at 77 cents. If the option scheme is implemented, all of the AuStar listed options will be cancelled in exchange for the issue of new White Rock options. Next steps If shareholders approve the share and option schemes on July 30, White Rock and AuStar will go back to the Federal Court, which also needs to give the schemes the green light in a meeting on August 11. From there, the schemes are slated to come into effect the following day, with an announcement on the ASX. If all proceeds to schedule this would also the last day of trade for AuStar shares and options. The record date to prove shareholders are entitled to participate in the schemes is August 16, while the merger should come to fruition on August 23. AuStar and White Rock will update AuStar security holders on any material developments in relation to the schemes.