PERTH (miningweekly.com) – The share price of junior gold developer Bulletin Resources rose by 70% on Friday after the company announced a competing offer for its Halls Creek gold project, in Western Australia.

In December last year, Bulletin signed a A$4.4-million sale and joint venture (JV) agreement with fellow-listed Matsa Resources, which would see Matsa take an initial 49% stake in the project.

The Matsa agreement provided Bulletin with a provision to accept a superior offer, should it arise.

The gold junior on Friday announced that it had now received an alternative nonrelated third party offer from ASX-listed Pacific Niugini, which was also seeking to acquire a 49% stake in the project.

However, its JV offer was valued at A$6.8-million.

Under the Pacific Niugini offer, Bulletin would receive a A$1.5-million cash payment, which was 250% higher than the Matsa offer, as well as A$1.3-million in Pacific Niugini shares.

Pacific Niugini would further spend some A$1.2-million in the first 12 months of the JV period, which would increase its stake in the JV by 12%. An additional A$1.2-million spend over the following 12 months would add an additional 15% equity, which would bring Pacific Niugini’s holding in the project to 80%.

The company would further have to spend A$1-million to keep the tenements in good financial standing for a period of three years, after the first year.

Bulletin would be free-carried for a total expenditure of A$4-million over four years, before having to elect on whether it would co-fund the project going forward on a 20% equity basis, or whether it would divest its share in the project to Pacific Niugini.

Bulletin’s board told shareholders on Friday that the Pacific Niugini offer had been assessed as superior to the Matsa offer, and Matsa had now been notified of Bulletin’s decision to pursue a transaction with Pacific Niugini.

If the transaction was successful, Pacific Niugini would immediately take steps to finalise the mining and processing plans and to obtain the necessary permits to restart operations at the Halls Creek mine site.

Bulletin shares were trading at a high of A$0.018 a share on Friday, up from a low of A$0.013.