Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Genesis Minerals has completed the bookbuild for a A$275-million conditional share placement, which forms part of its merger agreement with gold miner St Barbara.
The two companies earlier this week announced a merger agreement to consolidate gold holdings in the Leonora region of Western Australia, which would result in St Barbara spinning out its other assets into a newly formed company.
Gensis’ capital raising will fund the merged entity and facilitate the transaction.
Genesis said on Wednesday that the company had now closed the bookbuild for the A$275-million conditional placement and would issue 229.2-million shares at a price of A$1.20 each.
The placement was cornerstoned by investors AustralianSuper, Resource Capital Fund VII and other institutional investors.
The placement is conditional on Genesis shareholders approving not only the issue of new shares under the placement, but also the scheme of arrangement with St Barbara to form Hoover House.
“We are very pleased with the level of support shown by shareholders of both Genesis and St Barbara for the conditional placement, with the strong demand received representing a clear endorsement of the proposed combination. By combining with St Barbara, we are creating Hoover House, the premium Australian gold company we envisaged, with sustainable, high-quality production,” said Genesis MD Raleigh Finlayson.
“The placement will ensure balance sheet strength and flexibility for both Hoover House and Phoenician Metals post the scheme and demerger, and will allow Hoover House to progress organic growth opportunities across Gwalia and Tower Hill, supporting the path to more than 300 000 oz/y gold production from Leonora.”
St Barbara has welcomed the completion of the bookbuild.