Kingsgate Consolidated has made a friendly $22 million takeover bid for explorer Laguna Resources less than a week after launching a separate $376 million bid for West Perth-based Dominion Mining.
Laguna owns the Arqueros gold and silver project in Chile, with a resource of 1.1 million ounces of gold equivalent.
"The transaction leverages synergy between Kingsgate's South American commercial and technical experience and Laguna's Chilean-focused management," a joint statement from the company's said.
"The acquisition is consistent with Kingsgate's stated strategic intention to diversity its asset base outside Thailand and expand the company's portfolio in Australasia, South East Asia and South America," it said.
Under the terms of the bid, Laguna shareholders will be offered one Kingsgate share for every 520 Laguna shares held, valuing each Laguna share at about two cents.
Laguna directors have unanimously recommended the deal, and said they intend to sell their shares to Kingsgate in the absence of a superior offer.
"The Arqueros project is a very well-developed resource and will organically grow Kingsgate's resource base," said Kingsgate chairman Ross Smyth-Kirk.
Laguna chairman Matthew Wood said if the deal proceeds it would provide Laguna shareholders with exposure to one of the Australian stock market's leading gold companies.
"I would encourage all Laguna shareholders to accept this offer," Mr Wood said
Last Wednesday, Kingsgate announced plans to takeover Dominion Mining.
The bid has been unanimously recommended by Dominion's board who have agreed to vote the shares they control in favour of the transaction.
The terms of the offer are 0.31 Kingsgate shares for every one Dominion share.
This represents a 33 per cent premium to Dominion's closing share price, a 28 per cent premium to the 5 day and 35 per cent premium to the 30 day volume weighted average price of Dominion shares up to October 19.
It values Dominion at $3.63 per share.
