Genesis Minerals has made a bid to acquire the remaining 20 per cent of Dacian Gold shares it does not already own.
The agreement is a bid implementation deed to be carried out by way of a recommended conditional off-market takeover offer.
Dacian shareholders who accept the offer will receive 0.1685 new Genesis shares for every one Dacian share they hold.
The offer consideration implies a value of $0.235 per Dacian share and a total equity valuation for Dacian of $286 million.
If, during or at the end of the offer period, Genesis acquires at least 95.1 per cent of Dacian shares, the offer consideration will be increased to 0.1935 Genesis shares for every one Dacian share held.
The offer is conditional on Genesis holding a relevant interest in at least 90 per cent of all Dacian shares during or at the end of the offer period.
Genesis managing director Raleigh Finlayson said he considers the bid the right move for the company, given the large-scale resources, reserves and milling infrastructure in the Leonora district in Western Australia.
“The acquisition of the remaining 20 per cent of Dacian is a logical step to simplify the ownership of an enviable position in the Leonora District, which includes 15 million ounces of combined resources, 3.9 million ounces of combined reserves and 4.3 million tonnes per annum of combined milling capacity.”
Dacian has urged shareholders to accept the offer for all company shares they control.
“The independent board committee of Dacian has carefully considered the offer and encourages all Dacian shareholders to accept the offer in the absence of a superior proposal and subject to an independent expert concluding and continuing to conclude that the offer is fair and reasonable,” Dacian independent non-executive chairman Craig McGown said.
The offer is set to close on November 17 2023.
