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St Barbara buys Bardoc Gold to accelerate Leonora expansion

Genesis St Barbara

St Barbara has entered into a binding scheme implementation deed (SID) that will enable the company to acquire 100 per cent of Bardoc Gold.

Bardoc shareholders will receive 0.3604 new St Barbara shares for each Bardoc share as part of the offer, which values Bardoc at approximately $157 million and its shares at $0.53 each.

This represents a 29.2 per cent premium to the closing price of Bardoc shares on December 17.

Bardoc shareholders will own approximately 13 per cent of all St Barbara shares once the SID has been implemented, with St Barbara shareholders owning 87 per cent of the company’s shares.

The transaction comes after Bardoc initiated a strategic review of its Bardoc gold project in September, which highlighted St Barbara as the logical owner of the project given the relevant infrastructure connecting Bardoc with St Barbara’s Leonora processing plant.

For St Barbara, the Bardoc acquisition positions the company to accelerate its Leonora Province Plan connected to its Leonora gold operations, with the advanced Zoroastrian and Aphrodite underground deposits identified as noteworthy assets for the ASX-200 gold miner.

St Barbara will look to integrate Zoroastrian into the Province Plan as a source of near-term mill feed, while ore from the Aphrodite refractory underground deposit will enable St Barbara to accelerate the installation of refractory treatment capacity at the Leonora processing plant.

St Barbara managing director and chief executive officer Craig Jetson said the Bardoc acquisition was a logical decision given the compatibility of its assets.

“St Barbara has been focused on expanding our footprint within the Leonora province to fill the mill by growing our deposits through acquisitions and exploration. Acquiring Bardoc Gold unlocks access to extensive land packages near our Leonora operations,” he said.

“The location of the Bardoc Gold Project, situated near the rail line and highway to the south of Leonora, brings the Bardoc ore bodies within economic haulage range of our Leonora processing plant.”

St Barbara’s ongoing pre-feasibility study regarding the Leonora expansion has highlighted open pit mining as the best development option for the Tower Hill deposit, something which has elevated the prospect’s mineral resource estimate to approximately 1.2 million ounces.

“Combined with our existing regional opportunities such as Tower Hill and Harbour Lights, the acquisition of Bardoc facilitates the accelerated delivery of a multi-decade province of satellite mines feeding the Leonora processing plant,” Jetson said.

“This provides St Barbara with significant operating flexibility and value as part of the Leonora Province Plan.”

Bardoc Gold chairman Tony Leibowitz is buoyed by the future prospects of the consolidated St Barbara.

“The strategic review we initiated in September has delivered on its key objectives and secured a very positive outcome for Bardoc shareholders, with an attractive transaction that delivers a substantial premium while providing exposure to two significant growth opportunities in gold and battery metals,” he said.

“Considering that we only commenced the strategic review just over two months ago, we have achieved a great deal in a very short space of time, and I would firstly like to acknowledge the hard work of the Bardoc team, our key advisers and also the extremely professional manner in which St Barbara has approached this transaction.”

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