Finlayson pushes to get Dacian deal done

Raleigh Finlayson-led Genesis Minerals has made an improved offer to secure the remaining shares it doesn’t already own in Dacian Gold, a dormant goldminer key to his plans for Western Australia.

More than 12 months after tabling its first proposed takeover, Genesis has entered a binding bid implementation deed to clean up the remaining 20 per cent by offering holdouts an improved 0.1685 new Genesis shares for each share held. 

The new offer - which will lift to 0.1935 Genesis shares if it can secure a 95.1 per cent interest in the target - prices Dacian shares at about 23.5 cents, more than double what was offered in July 2022.

Genesis has amassed an 80 per cent interest in Dacian, which was forced to put its Mt Morgans processing plant under care and maintenance in June last year citing “significant” cost pressures at the Laverton operation. 

Genesis has angled the deal as a 'logical transaction' against the backdrop of its recent moves in the region, including a drawn out deal to buy the famed Gwalia gold mine from St Barbara. 

“The acquisition of the remaining twenty per cent of Dacian is a logical step to simplify the ownership of an enviable position in the Leonora District - fifteen million ounces of combined Resources, 3.9 million ounces of combined Reserves and 4.3 million tonnes per annum of combined milling capacity," chief executive Raleigh Finlayson said in a statement on Monday. 

Dacian's independent board committee said it intends to unanimously accept the offer, subject to no superior proposals coming forward. 

The suitor has already entered into a pre-bid acceptance with DGO Gold chair Ed Eshuys for his 1.66 per cent shareholding. 

Mr Finlayson has previously highlighted the role of Dacian's processing plant as crucial in executing a longer-term plan to match mines to mills in the region. 

The deal means Genesis, in theory, won't have to undertake a previously scheduled upgrade to Gwalia's 1.4mtpa mill. 

More broadly, Genesis is setting up to become a 300,000 ounce per annum producer.

The new offer on the table is conditional on Genesis securing at least 90 per cent of all Dacian shares by the end of the offer period on November 17.

Sternship Advisers is acting as financial adviser to Genesis and Gilbert + Tobin as legal adviser. 

At close of trade Monday, Genesis shares were up 0.36 per cent at $1.40.

Shares in Dacian Gold surged 80 per cent to 22 cents apiece.