PERTH (miningweekly.com) – ASX-listed exploration firm Genesis Resources has become the latest Australia-based takeover target of Singapore-listed Blumont Group.

Genesis told shareholders on Friday that it had signed a bid implementation deed with Blumont, which would make an off-market takeover offer for all the issued shares in the company.

Under the agreement, Blumont would offer 5.3 of its own shares for every two Genesis shares held, within the next two months.

The scrip offer implied a value of 16.9c per Genesis share, based on Blumont’s value-weighted average price of 7.19 Singapore cents, an exchange rate of 1.127 and a total market value of A$32.5-million.

The offer was conditional on a 50.1% minimum acceptance condition and Blumont shareholder approval.

Genesis directors said on Friday that the company would recommend that shareholders accept the takeover offer.

Genesis currently owns seven exploration licences in Queensland and the Northern Territory, where it was exploring for a range of minerals, including copper and manganese.

The company also has the right to a majority stake in the Plavica gold/silver/copper project in Macedonia, which has an inferred resource of 1.86-million ounces of gold, 28.2-million ounces of silver and 33 900 t of copper.

Last year, Blumont invested in Australia-listed, Africa-focused Discovery Metals, by way of a A$8.75-million share placement and a $100-million convertible bond, which gave it a 60% interest in the Botswana copper producer.

Blumont also made a A$124-million takeover offer for ASX-listed Cokal, which has metallurgical coal projects in Indonesia and Tanzania, but was forced to abandon the offer after its shareholders responded negatively to the news, sending shares crashing.

The Singapore-listed company said on Friday that the proposed acquisition of Genesis reaffirmed the company’s commitment to becoming Asia’s major diversified natural resources company.

Chairperson Alex Molyneux also said that the company was continuing its search for additional acquisition targets and joint venture partners to further add shareholder value.