Gold Road moves on DGO buy

Gold Road Resources will proceed to a compulsory acquisition of DGO Gold after sweetening its all-scrip offer for the Melbourne-based explorer last month.

West Perth-based Gold Road told investors it had secured a 95.14 per cent stake in DGO and would therefore move to compulsorily buy the remaining stock in the ASX-lister.

As a result, DGO shareholders are set to receive 2.25 shares Gold Road shares for each DGO security they own, after being offered 2.16 per share in an initial offer back in April.

Gold Road upped that offer at the end of May when acceptances were at 21.5 per cent, with 80 per cent minimum acceptance needed to get the deal over the line.

If and when the the deal is finalised, Gold Road will gain exposure to three listed gold hopefuls including a 14.4 per cent stake in De Grey Mining a 6.8 per cent stake in Dacian Gold and 20.1 per cent of Yandal Resources.

Dacian last week revealed it would suspend mining at its flagship Mt Morgans operation in Laverton by the end of June amid growing cost pressures, as well as the departure of its managing director.

Fellow gold play De Grey is currently undertaking a prefeasibility study for the Mallina project, recently touting a 25 per cent increase to its resource estimate for the Pilbara outfit.  

Gold Road shares closed the trading day up 1.7 per cent at $1.20.