St Barbara (ASX:SBM) is set to acquire a 14.4% interest in Geopacific Resources (ASX:GPR) by exchanging its stake in Patronus Resources (ASX:PTN). The decision, revealed on June 6th, reflects St Barbara’s assessment of limited value-adding opportunities within Patronus, while recognizing potential synergies with Geopacific. Patronus has agreed to a selective buyback of St Barbara’s 158.125 million shares, representing 9.66% of Patronus’ share register, subject to shareholder approval.
In return for its Patronus shares, St Barbara will receive 458.6 million Geopacific shares from Patronus. This transaction is anticipated to finalize following shareholder approval at Patronus’ upcoming general meeting. St Barbara, with a market capitalization of $379 million, views this move as strategically aligning with and enhancing its profile within Geopacific, particularly concerning the advancement of the Woodlark Gold Project in Papua New Guinea. St Barbara’s existing operational presence in Papua New Guinea, through its Simberi Gold Mine, offers local expertise and strategic advantages for the Woodlark Project, owned by Geopacific Resources, which boasts a 1.6 million ounce gold resource.
