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M&A bubbles to

Leonora surface

by Dominic Piper

he Leonora gold consolidation jigsaw has two new pieces
Tto fit with the arrival of Kin Mining NL onto the Dacian Gold
Raleigh Finlayson
Ltd register and Dan Lougher into the managing director’s
chair at St Barbara Ltd.
“Kin has acquired a strategic holding in Dacian to ensure
The future of Leonora appeared set in stone just a few months
it has the ability to participate in a meaningful way in any
ago as former Northern Star Resources Ltd executive Raleigh
future consolidation, while also ensuring that available
Finlayson laid out his intentions for new vehicle Genesis
milling capacity is appropriately utilised,” he said in an ASX
Minerals Ltd with an audacious bid for struggling miner
announcement.
Dacian.
“Kin considers that the 3 mtpa Mt Morgans treatment plant…
Under Finlayson’s leadership, explorer/developer Genesis
is a strategically valuable asset that will play an important
has raised $120 million, much of which is dedicated to funding
role in the inevitable consolidation of the Leonora district.
a turnaround at Dacian and its Mt Morgans gold mine, as well
Kin welcomes the initiation of the consolidation activities by
as fund development of its own Ulysses project in the Leonora
Genesis in its successful bid and achievement of majority
district.
ownership of Dacian.
Following that, Finlayson made his wider intentions known,
“The region has an oversupply of milling capacity with around
aiming for a nil-premium merger with St Barbara, which has
9 mtpa available and a shortage of immediately available
continually struggled to address problems at its flagship
mining inventory. Kin believes [its] deposits have strategic
Gwalia mine in Leonora while it battles to get its Simberi
value in the region with the potential to provide near-term mill
(Solomon Islands) and Atlantic (Canada) projects on an even
feed which could assist Dacian as a bridging source of ore
keel.
while it advances its longer-term strategy.”
The Genesis offer for Dacian appeared to be going smoothly,
By November, Kin had accumulated a 7.34% holding in
with the company reaching 75.5% ownership in September.
Dacian, enough of a blocking stake to complicate Genesis’
However, by October, acceptances had stalled, forcing the
plans.
company to declare its scrip offer of 0.0843 shares for every
Dacian share its best and final terms. Genesis has stuck to its guns with new chairman Tony
Kiernan using the company’s AGM to reinforce the logic of
Genesis’ path was further muddied in September when Kin
its intentions.
– which owns the 1.4 moz Cardinia project in the district –
started buying Dacian stock. Kin managing director Andrew “Earlier in the year, the new team unveiled our ‘open for
Munckton was very clear about his company’s desire to buy a business’ strategy, with the vision to build a premium
seat at the Leonora consolidation table. Australian gold miner,” Kiernan said.

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