Bulletin up on superior Halls Creek bid

Queensland-based explorer Pacific Niugini has made a $6.8 million bid to purchase an 80 per cent stake in Bulletin Resources' Halls Creek gold projects, dwarfing an original offer from Bulletin's major shareholder Matsa Resources.

Bulletin agreed last month to sell a stake of up to 75 per cent in the Halls Creek projects to Matsa in exchange for staged expenditure of $4.4 million but told the market today it had assessed Pacific's offer as superior to the existing Matsa arrangement.

Pacific would acquire an initial 49 per cent equity stake in the projects in exchange for a $1.5 million cash payment and $1.3 million worth of Pacific shares under the terms of its offer. 

It would then have the option of spending a further $4 million over four years to take its stake in the projects up to 80 per cent.

Bulletin would at this point have the option of divesting its remaining 20 per cent stake to Pacific in exchange for $2 million cash or shares.

Should Matsa choose to match Pacific's offer within the next 14 days, Bulletin will be obliged to accept the revised Matsa bid.

Bulletin said it supported Pacific's intention to advance the Halls Creek projects towards mining in the near term by finalising mining and processing plans and seeking permit approvals.

Bulletin shares soared 70 per cent higher on the Pacific bid, trading at 17 cents at 12:08pm WST.