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.