Gold producer Kingsgate Consolidated Ltd
(ASX:KCN) has made a $376 million takeover bid for fellow gold miner Dominion Mining Ltd
(ASX:DOM) as it moves towards becoming a mid-tier gold producer.
In a statement to the ASX, Kingsgate says it has signed a scheme implementation agreement with Dominion under which it will acquire all the issued shares in the miner under a scheme of arrangement.
Kinsgate is offering 0.31 of its shares for every Dominion share which values the miner at $3.63 a share.
Dominion directors have unanimously recommended that shareholders vote in favour of the offer.
The acquisition of Dominion would boost Kingsgate’s annual production to around 300,000 ounces of gold, however it needs to reach 500,000 before achieving mid-tier status.
Kingsgate chairman Ross Smyth-Kirk says the company will continue to seek out growth opportunities from which to further create value for its shareholders and reach mid-tier status.
Kingsgate earned $73.06 million for the year to June 30, 2010.
