20/12/2021 - 13:49

St Barbara to buy Bardoc for $157m

20/12/2021 - 13:49

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Shares in Fremantle-based junior Bardoc Gold enjoyed a 13 per cent rise after revealing a takeover proposal from gold producer St Barbara valuing the company at $157 million.

St Barbara to buy Bardoc for $157m
Bardoc Gold owns a namesake project in WA's Eastern Goldfields.

Shares in Fremantle-based junior Bardoc Gold enjoyed a 13 per cent rise after revealing a takeover proposal from gold producer St Barbara valuing the company at $157 million.

The two companies announced to the ASX today that they had entered a binding scheme arrangement under which St Barbara is set to acquire all shares in Bardoc in a scrip deal targeted for April next year.

The deal comes as part of a strategic review initiated by Bardoc Gold in September 2021.

Today’s decision concludes this review with St Barbara as the “logical owner” of Bardoc’s namesake gold project according to the company, situated in WA’s Eastern Goldfields.

Bardoc’s flagship asset is believed to contain 3.07 million ounces of contained gold and spans some 447 square kilometres of mining tenements.

Bardoc shareholders are set to receive 0.3604 new St Barbara shares for each Bardoc share held, appraising Bardoc shares at $0.530 individually and the company and its projects at $157 million.

The pricing represents a 29.2 per cent discount on Bardoc’s last closing price.

Bardoc chair Tony Leibowitz said his company undertook the strategic review facing significant challenges as a junior developer.

“We have achieved a great deal in a very short space of time,” Mr Leibowitz said in a statement.

“The board made the courageous decision to halt our development activities and consider alternative strategic pathways for our cornerstone asset, and we believe this was the right call for our shareholders.

“The transaction we have secured with St Barbara is an excellent outcome which will deliver ownership of the Bardoc Gold Project to a much larger company with the balance sheet strength, resources and technical capability to bring the Project into production through its Leonora gold operations.”

The companies have also agreed to a proposed spin-out of Bardoc’s South Woodie Woodies manganese project in Western Australia, which shareholders will be asked to approve in late March 2022.

St Barbara shares were down 6.46 per cent to trade at $1.38.

Bardoc shares were up 14.63 per cent to trade at 47 cents.  

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