Genesis Minerals has proposed to take full ownership of Australian gold development and exploration company Dacian Gold by acquiring the remaining 20% stake in the latter.
Under the binding bid implementation deed (BID), Dacian Gold’s shareholders will receive a base offer consideration including 0.1685 new Genesis Minerals shares for each Dacian Gold share.
It implies a value of A$0.235 ($0.15) per share for Dacian Gold.
Genesis Minerals said that the base offer consideration will be increased to an improved offer consideration of 0.1935 new Genesis Minerals shares for each Dacian Gold share held once Genesis Minerals acquires an interest in at least 95.1% of Dacian shares.
Besides, Genesis Minerals said that the acquisition will consolidate the ownership of complementary large-scale resources and reserves and a large-scale milling infrastructure.
Dacian Gold owns 100% of Mt Morgans gold project near Laverton and the Redcliffe gold project tenement holding near Leonora, Western Australia.
Genesis Minerals managing director Raleigh Finlayson said: “The acquisition of the remaining ~20% of Dacian is a logical step to simplify the ownership of an enviable position in the Leonora District – 15Moz of combined Resources, 3.9Moz of combined Reserves and 4.3Mtpa of combined milling capacity.”
In regard to the offer, Genesis Minerals appointed Sternship Advisers as financial advisor and Gilbert + Tobin as legal advisor.
In July 2022, Genesis Minerals offered to acquire Dacian Gold in an all-stock deal worth A$111m. Under the offer, Dacian Gold’s shareholders exchanged each of their shares in the company for 0.0843 shares of Genesis Minerals.
The deal was closed in February 2023 by Genesis Minerals, acquiring an 80.08% stake in Dacian Gold.
