PERTH (miningweekly.com) – ASX-listed Genesis Minerals has declared its recommended off-market takeover offer for gold miner Dacian Gold to be unconditional, with all remaining outstanding defeating conditions waived.
Genesis is offering 0.0843 of its own shares for every Dacian share held, implying a value of 10.2c a share for the Dacian holding, and an equity value of A$111-million, based on Genesis’ last closing price.
The offer has been supported by Dacian directors, who have urged shareholders to accept the offer.
Genesis said on Thursday that as a result of the offer being declared unconditional, Genesis’ voting power in the takeover target would increase to 47.12%, which also meant that the likelihood of a superior proposal emerging was low.
The offer is currently scheduled to close on October 3, unless extended.
Genesis’ acquisition of Dacian, if completed, would achieve "sensible" regional consolidation by combining Genesis’ organic growth and high-grade resources with Dacian’s large-scale strategic milling infrastructure at Mt Morgans.
The combined group would have a 4.5-million-ounce resource in the Leonora district, and the financial capacity and operational experience to bring the combined assets back into production in due course.