Major gold miner St Barbara (ASX: SBM) has made a $157 million bid to acquire Bardoc Gold (ASX: BDC), in a move that both companies say will connect their key assets in Leonora.
Bardoc’s board has endorsed the bid which values it at $0.53 per share, and is a 29.9% premium to its last closing price of $0.41 on 17 December.
It was also a 34.7% premium to Barco’s 30-day volume weighted average price.
Under the deal, investors will receive 0.3604 new St Barbara shares for every Bardoc share held.
Once the acquisition has been completed, Bardoc shareholders will own 13% of St Barbara.
Strategic review
Bardoc appointed Neil Biddle as an interim executive director at the end of September to head up a strategic development review of the namesake Bardoc gold project in Western Australia’s goldfields.
As part of the review, Mr Biddle considered a number of pathways to unlock the project’s value including strategic merger and acquisition opportunities.
Following the review, St Barbara was identified as the project’s “logical owner” – particularly with rail and road directly connecting it to St Barbara’s Leonora processing plant.
St Barbara plans to expand its Leonora plant’s capacity from 1.4 million tonnes per annum to 2.1Mtpa.
Ore from the Bardoc project’s primary Aphrodite and Zoroastrian deposits would provide near-term mill feed.
Bardoc gold project
The Bardoc gold project hosts 3.07 million ounces in global gold resources, with upside potential. It has current reserves of...
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