PERTH (miningweekly.com) – The shareholders of TSX-V-listed Atlantic Gold will meet on July 15 to vote on a A$768-million takeover offer from Australian gold miner St Barbara.
St Barbara in May announced plans to acquire all of the outstanding shares in Atlantic for C$2.90 a share, implying an enterprise value of C$802-million.
Atlantic owns the Moose River project, in Nova Scotia, which has a mineral resource of some 2.4-million ounces, including a mineral reserve of 1.9-million ounces.
St Barbara on Monday said that the Supreme Court of British Columbia has issued an interim order allowing Atlantic to convent a special shareholder meeting to consider and vote on the transaction.
At the end of last week, St Barbara completed a A$490-million entitlement offer, and had some A$870-million in cash and deposits in readiness by June 14 to settle the transaction, along with a A$200-million three-year revolving facility.
Meanwhile, St Barbara on Monday reported the blocked paste reticulation circuit issue at its Gwalia operation has now been resolved, with paste fill operations resuming.
Full year production guidance at the project has been maintained at around 220 000 oz of gold.
However, production at Simbiri was expected to reach close to 140 000 oz in the 2019 financial year, up from the previously announced target of 135 000 oz, on the back of higher-than-anticipated grade of the ore being processed to date in June.