The ongoing acquisition of St Barbara’s Leonora assets has reached a new milestone with Genesis Minerals shareholders voting in favour of the transaction.
Genesis announced that completion of the acquisition is on track for June 30 following an overwhelming majority of shareholders voting in favour.
Genesis and Silver Lake Resources have been in a bidding war for the Western Australian gold mine for months, with Silver Lake upping its bid several times.
Despite the multiple increments, St Barbara has continued to stand by its commitment to sell the assets to Genesis.
“The binding Genesis transaction is fully and definitively documented, fully funded by a committed $400 million capital raising, not subject to due diligence, supported by a $25 million deposit and has received indications of support from 49 per cent of Genesis’ register,” St Barbara chair Kerry Gleeson said.
“Silver Lake’s latest proposal would still require termination of the binding Genesis transaction before the satisfaction of conditions attached to the Silver Lake proposal, including a Silver Lake shareholder vote.”
The Leonora operation, located in Western Australia, consists of the Gwalia underground mine and processing plant as well as nearby development opportunities.
“The acquisition of St Barbara’s Leonora assets will position Genesis as a gold industry leader with a dominant position in Western Australia’s world-class Leonora district,” Genesis managing director Raleigh Finlayson said.
“Investors are demanding sensible regional consolidation, and this deal hits the spot, targeting long-life production growth to 300,000 ounces per annum1 exclusively from Leonora.”