PERTH (miningweekly.com) – ASX-listed junior Emerald Resources has made a takeover offer for unlisted Bullseye Mining, which holds the North Laverton gold project, in Western Australia.
Under the offer, Bullseye shareholders will receive 1 new Emerald share for every 3.43 Bullseye shares held. The offer values Bullseye at approximately A$117-million or A$0.30 a share, based on Emerald’s 30-day volume weighted average share price of A$1.03 a share on November 26.
The offer has been unanimously recommended by the directors of Bullseye, who have also agreed to accept the offer in the absence of a superior proposal.
“The Bullseye Mining acquisition aligns with our strategy of becoming a multi-gold project company. The combination will create a gold exploration and production company with a diversified asset base, strong balance sheet, solid and recurring revenue, with significant cost savings and operational synergies,” said Emerald chairperson Simon Lee.
“The Bullseye Mining team have done a highly commendable job in consolidating the entire Dingo Range greenstone belt and identifying and developing resources. We see the strong probability of expanding these resources through the inclusion of results from the completed 35 000 m of drilling and infill and extensional drilling campaign planned for 2022 as a step in the company’s aims to define, build and operate a second gold mine in the coming years.
“Our highly credible development and geological team are looking forward to the opportunity to collaborate with Bullseye’s exploration team to maximise the possibilities of this significant gold asset.”
Bullseye owns three Western Australian gold projects, totalling in excess of 1 200 km2 of highly prospective gold tenure.
Bullseye’s most advanced project, the North Laverton gold project, which covers in excess of 800 km2 of tenure and captures the entire Dingo Range greenstone belt, is located in Western Australia. In excess of 100-million ounces of gold has been produced or discovered in the areas surrounding the project.
Bullseye chairperson Peter Burns said the transaction brought several benefits to Bullseye shareholders, including significantly de-risking project financing and project development risks by providing exposure to Emerald’s highly experienced and proven operational team.
“The proposed offer provides Bullseye shareholders with an attractive value proposition, including exposure to Emerald’s strong cash-producing Okvau gold mine and also provides Bullseye shareholders with liquidity to their investment via the ASX
“The board of Bullseye unanimously recommends this compelling offer and encourages all Bullseye shareholders to accept the offer in the absence of a superior proposal.”
The offer is subject to a minimum 90% acceptance condition, as well as no material adverse changes or prescribed occurrences for Bullseye.