St Barbara (ASX:SBM) subsidiary to acquire Moose River Resources

Company News

by Katrina Bullock

Gold producer and explorer, St Barbara (ASX:SBM) has agreed to acquire Moose River Resources Incorporated through its wholly owned subsidiary Atlantic Mining.

Following this transaction, St Barbara will own 100 per cent of the Touquoy Mine in Nova Scotia, Canada and its surrounding exploration tenements.

It is proposed that St Barbara will acquire the remaining shares in the target company by way of a court approved plan of arrangement for cash of around $60 million. The acquisition will be funded from St Barbara’s existing cash reserves.

The Moose River Resources board have confirmed that it will recommend the offer to its shareholders for approval. To proceed, it will require 75 per cent of shareholders attending a special meeting to vote in favour of the acquisition.

Shares in St Barbara (ASX:SBM) are trading 1.73 per cent higher at $3.83.
 

Katrina Bullock

Finance News Network
Katrina is a respected TV journalist, as well as a renowned presenter and award winning lawyer. She holds a Bachelor of Laws (Honours 1st class, division 1), a Bachelor of Business (with Distinction) and is currently undertaking a PhD in Law focused on stock exchange disclosures and corporate governance. She began her career as a corporate lawyer in an Australian top tier commercial law firm and is currently the General Counsel of Greenpeace Australia Pacific. In 2020 Katrina was named one of the 30 best lawyers in Australia under 30 by Lawyer's Weekly.