PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings on Friday made a A$38.2-million all-scrip takeover offer for fellow-listed Bligh Resources, prompting the takeover target to withdraw an entitlement offer to raise up to A$2.8-million.

Saracen is offering Bligh 0.0369 of its own shares for every Bligh share held, valuing the company at $12.8c a share. The offer represented a 97% premium to Bligh’s closing price on June 13, as well as a 97% premium to Bligh’s one-month volume-weighted average share price.

Bligh holds the Bundarra gold project, which is some 30 km south of Saracen’s own Thunderbox project, and adjacent to the sealed Goldfields highway. The project consists of five mining leases and six prospecting licences hosting four gold deposits, with a Joint Ore Reserves Committee-compliant resource of some 9.7-million tonnes, grading 2.1 g/t gold for 66 000 oz of contained gold.

“The offer makes sense for both companies. Saracen’s infrastructure at our nearby Thunderbox operation means we can unlock the value of Bundarra and this is reflected in the share price premium we have offered to Bligh shareholders,” said Saracen MD Raleigh Finlayson.

This is the second time Saracen had a go at Bligh’s assets. Two years ago, the company moved to buy the Bundarra project, but Zeta Resources swooped on the company to derail the deal between the companies. At the time, Zeta only owned 19.9% of Bligh and subsequent to its 3.5c all-cash offer, it now owns nearly 85% of the gold junior.

Zeta has indicated that it would accept the Saracen offer in the absence of a superior proposal.

Bligh’s board of directors have unanimously recommended that shareholders accept the offer in the absence of a superior proposal, with the directors announcing their intention to accept the offer for their combined 3.43% interest in the company.

The takeover offer is subject to a number of conditions, including a 90% minimum acceptance condition and regulatory approvals.

With the takeover offer on the table, Bligh on Friday announced the withdrawal of its one-for-five non-renounceable entitlement offer, which was launched in May to fund exploration at the Bundarra project and to satisfy outstanding debt to Zeta Resources.