PERTH (miningweekly.com) – Junior Kin Mining has acquired 20-million shares in takeover target Dacian Gold, giving it a 1.63% stake in the company.
ASX-listed Genesis Minerals is in the midst of a takeover of Dacian Gold, 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.
Kin told shareholders on Wednesday that the on-market acquisition of shares in Dacian was a strategic move, given the current consolidation of the Leonora mining district which is currently unfolding, and that the current market price of Dacian shares represented good value.
Genesis currently hods a 57.7% interest in Dacian through its off-market bid.
Genesis previously said that its 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.