Australia-based St Barbara has agreed to acquire all of the shares of gold producer Bardoc Gold, valuing the latter at $111.5m (A$157m).
As per the binding scheme implementation deed (SID), shareholders of Bardoc will receive 0.3604 new St Barbara shares for each share held. The offer values each Bardoc share at A$0.53.
Once the SID has been implemented, St Barbara shareholders will own around 87% of all issued St Barbara shares while Bardoc shareholders will hold around 13%.
The acquisition will provide St Barbara with access to the advanced Aphrodite and Zoroastrian underground deposits, which are located adjacent to the rail line that connects to the St Barbara’s Leonora processing plant.
St Barbara managing director and CEO Craig Jetson said: “A key component of our Leonora Province Plan, which we launched in December 2020, was a review of opportunities in the region where we could deliver value.
“Earlier this year we identified that the Bardoc ore bodies are in proximity to the Kalgoorlie-to-Leonora rail line and highway bringing them within economic haulage range of Leonora.
“In combination with our existing organic opportunities, including Tower Hill and Harbour Lights, this acquisition positions us to accelerate the delivery of a multi-decade province of satellite mines feeding an upgraded 2.1Mtpa capacity mill capable of alternating between free milling and refractory ore at Leonora.”
The Bardoc Gold project is a key asset of Bardoc. The project is located in the Eastern Goldfields region and nearly 40km north of Kalgoorlie in Western Australia.
Meanwhile, Bardoc’s South Woodie Woodie manganese asset in the East Pilbara region of Western Australia is planned to be demerged into a wholly-owned unit of Bardoc.
Bardoc Gold Chairman Tony Leibowitz said: “We undertook the review in light of the significant challenges confronting Bardoc as a junior developer aiming to bring a new project on stream in the face of cost pressures in the WA resource sector.
“The Board made the courageous decision to halt our development activities and consider alternative strategic pathways for our cornerstone asset, and we believe this was the right call for our shareholders.”
The firms plan to implement the scheme in mid-April 2022.