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Genesis mops up remaining Dacian shares

Genesis Dacian

When Genesis Minerals announced its desire to buy Dacian Gold in July last year, it wouldn’t have thought it would still be trying to win over Dacian shareholders 15 months later.

Genesis closed its original off-market takeover bid for Dacian in mid-February having acquired 80.8 per cent of the latter’s shares, with some Dacian shareholders opting not to buy into the transaction.

This included German investor group Delphi Group, who now has access to a far better deal, where its Dacian shares are now worth 0.1685 Genesis shares, rather than 0.0843 Genesis shares when the offer was initially available.

Genesis has advanced from a gold explorer to a producer now as well, having bought St Barbara’s Gwalia operating gold mine in the Leonora region of WA. The company’s share price is trading about 15 per cent higher now than it was when the Dacian Gold acquisition was first announced in early July 2022.

Genesis will look to acquire the remaining 19.2 per cent of Dacian shares through an off-market takeover offer. A base offer consideration comprising 0.1685 Genesis shares for each Dacian share values Dacian at $0.235 per share.

This will increase to 0.1935 Genesis shares for every Dacian share if Genesis acquires 95.1 per cent of Dacian shares as part of an improved offer consideration. This values each Dacian share at $0.27. Genesis will then be entitled to proceed to a compulsory full acquisition of Dacian shares.

“The acquisition of the remaining ~20 per cent of Dacian is a logical step to simplify the ownership of an enviable position in the Leonora district – 15 million ounces (Moz) of combined resources, 3.9Moz of combined reserves and 4.3 million tonnes per annum of combined milling capacity,” Genesis managing director Raleigh Finlayson said.

Genesis has a goal of producing at least 300,000 ounces of gold per annum in the years to come, with the Gwalia mine supported by other emerging deposits such as Tower Hill, Ulysses and Admiral.

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