Emerald Resources has made a takeover offer for unlisted Australian peer Bullseye Mining as part of its strategy to become a multi-gold project company.

The gold miner has signed a takeover bid implementation agreement (implementation agreement) to acquire all issued shares of Bullseye through an off-market Bullseye board recommended takeover offer.

Under the offer, Bullseye shareholders will receive one new Emerald share for every 3.43 Bullseye shares they hold. This values Bullseye at around $83.46m (A$117m) or A$0.30 per share.

The offer is subject to multiple conditions, including a 90% minimum acceptance condition by Bullseye shareholders.

Emerald chairman Simon Lee said: “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.”

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Bullseye has three Western Australian gold projects in its portfolio.

The company’s flagship project is the North Laverton Gold Project, which includes more than 800km² of tenure. The surrounding areas of the project have produced or discovered more than 100 million ounces of gold.

The other two projects owned by the company are the Southern Cross Gold Project and the Aurora Gold Project.

The acquisition will lead to the creation of a stronger gold exploration, development and production company with a prospective tenure portfolio of more than 2,500km².

Bullseye chairman Peter J Burns said: “This transaction brings many benefits to Bullseye shareholders, including significantly de-risking project financing and project development/implementation 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.”

Concurrently, Emerald has acquired 19.45% of the current Bullseye shares under the same terms as the offer.