PERTH (miningweekly.com) – Shareholders of ASX-listed Dacian Gold have been urged to accept a takeover offer from fellow listed Genesis Minerals.
Genesis is offering 0.0843 of its own shares for every Dacian share held, implying a value of 10.2c a share for the Dacian holding, and an equity value of A$111-million, based on Genesis’ last closing price.
On the successful completion of the takeover offer, Dacian shareholders would hold a near 21.2% interest in the combined group.
In the company’s target statement, Dacian nonexecutive chairperson Michael Wilkes told shareholders that the acquisition would allow shareholders to benefit from being part of an enlarged Genesis entity, led by an experienced board and management team focused on growth.
Wilkes pointed out that since pouring first gold in 2018, Dacian has produced over 500 000 oz from its Mt Morgans gold operations, but has continued to face operational challenges in the current environment that led to a review of the operating strategy in June this year, and the decision to suspend mining activities.
“Under its revised strategy, Dacian is transitioning to processing low-grade and heap leach stockpiles with a primary focus going forward on continuing exploration activities at Jupiter following recent encouraging drilling results. As a standalone entity, Dacian will continue to face material risks and may require additional capital to pursue this strategy and realise value from its established infrastructure and mineral resources,” he told shareholders.
“The offer, if successfully completed, will provide sufficient capital to continue with our accelerated extensive drilling campaign to test the potential for a large-scale, openpit mining operation at Jupiter,” he said.
Genesis’ takeover offer is scheduled to close on September 5, and is subject to a minimum 50.1% acceptance.