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(Kitco News) - Gold producer St Barbara (ASX: SBM) yesterday announced that it has agreed new terms for a proposed transaction with Genesis Minerals (ASX: GMD).
According to a company statement, under the revised transaction, St Barbara will sell its Leonora assets to Genesis for A$600 million as an asset sale rather than through the previously proposed merger and demerger.
The company said that the A$600 million consideration comprises upfront cash of A$370 million; 147.8 million shares in Genesis, valued at A$170 million; and an additional 52.2 million shares in Genesis, valued at A$60 million, contingent upon Tower Hill achieving first production.
Chair Tim Netscher commented, "The Board believes the transaction value from the sale of the Leonora assets represents fair value for our shareholders, who will now own a well-capitalized, debt-free business, with a portfolio that has significant potential, and the people and resources in place to realize its true potential.
"Simberi and Atlantic have combined 5.9Moz in mineral resources and 3.5Moz in ore reserves and provide a solid foundation for the business. The company has a clear strategy in place to maximize the value of those assets going forward.”
St Barbara is an Australian based, ASX listed company with gold mining operations in Australia, Canada and Papua New Guinea.
The company’s Leonora operations in Western Australia consists of the Gwalia underground mine and 1.4 Mtpa processing plant, as well as nearby development opportunities. The operation is developing an ore body that has already produced over six million ounces from open cut and underground operations.
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