St Barbara (ASX:SBM) to acquire Bardoc Gold for $157m

Company News

by Lauren Evans

St Barbara (ASX:SBM) and Bardoc Gold (ASX:BDC) have entered into a binding scheme implementation deed under which St Barbara will acquire all shares in the capital of Bardoc.

Under the agreement, Bardoc shareholders will receive 0.3604 new St Barbara shares for each Bardoc share, valuing Bardoc at around $157 million and each Bardoc share at $0.530. 

On a pro forma basis, St Barbara shareholders will own around 87 per cent and Bardoc shareholders will own around 13 per cent of all issued St Barbara shares. 

“St Barbara has been focused on expanding our footprint within the Leonora Province to fill the mill by growing our deposits, through acquisitions and exploration. Acquiring Bardoc Gold unlocks access to extensive land packages near our Leonora Operations," said St Barbara CEO Craig Jetson. 

"The location of the Bardoc Gold Project, situated near the rail line and highway to the south of Leonora, brings the Bardoc ore bodies within economic haulage range of our Leonora processing plant."

The company notes the acquisition is part of their Leonora Province Plan which was launched in December last year. 

“A key component of our Leonora Province Plan, which we launched in December 2020, was a review of opportunities in the region where we could deliver value. Earlier this year we identified that the Bardoc ore bodies are in proximity to the Kalgoorlie-to-Leonora rail line and highway bringing them within economic haulage range of Leonora."

According to St Barbara, the scheme is targeted for mid-April 2022.

Shares in St Barbara (ASX:SBM) are trading 6.8 per cent lower at $1.37.
 

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