PERTH (mininwgeekly.com) – Gold miner Genesis Minerals has made an offer to acquire the remaining near 20% interest in fellow-listed gold miner Dacian Gold under a binding bid implementation agreement.

Genesis is offering 0.1685 of its own shares for every one Dacian share held, implying a value of 23.5c a share to Dacian shares, with the base offer consideration to be increased to 0.1935 new Genesis shares for every Dacian share if the company acquires a relevant interest of no less than 95.1% of Dacian shares, implying a value of 27c a share.

The improved offer consideration represented a 116% premium to Dacian’s last closing price and a 127% premium to the company’s 20-day volume weighted average share price, as well as a 165% premium to Genesis' 10.2c a share takeover offer for Dacian in July last year.

The offer has been unanimously recommended by Dacian’s independent board committee, in the absence of a superior offer.

“In addition to a significant premium, the Offer provides Dacian shareholders with the opportunity to become shareholders of a company with significantly increased scale and demonstrated operational capability that is focussed on the Leonora and Laverton regions of Western Australia,” said Dacian independent nonexecutive chairperson Craig McGown.

“On successful completion of the offer, Dacian shareholders will continue to have exposure to the future upside associated with Dacian’s assets which are highly complementary to Genesis’ existing portfolio, whilst mitigating and diversifying their risks by becoming part of a larger, and more diversified gold company.

“The independent board committee of Dacian has carefully considered the offer and encourages all Dacian shareholders to accept the offer, in the absence of a superior proposal and subject to an independent expert concluding and continuing to conclude that the offer is fair and reasonable or not fair but reasonable.”

Genesis told shareholders that the transaction was a logical step to simplify the ownership of large-scale resources and reserves and milling infrastructure in the Leonora district of Western Australia.

Genesis in April last year unveiled a strategy to produce more than 300 000 oz/y. Following an intense period of acquisitions, Genesis has the assets and people in place to achieve this strategy. Genesis is now focused on delivering a five-year outlook to the market in March 2024, cornerstoned by a long life, "margin over ounces" Leonora business plan.

The offer will open on October 16 and will close on November 17, unless extended.