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neWs

Genesis gobbles up Dacian,

regains appetite for St Barbara

aleigh Finlayson’s Genesis Minerals Ltd comes less than a month after Dacian sus-
Rremains in talks with embattled miner St pended open-pit mining at Jupiter and an-
Barbara Ltd over a potential business com- nounced plans to halt underground works
bination after executing the first move in its as production costs continued to spiral out
bid to consolidate the Leonora gold district. of control at an operation which has failed
Genesis is set to acquire Dacian Gold to live up to expectations since pouring first
Ltd and the beleaguered Mt Morgans op- gold in 2018.
erations via a unanimously recommended Finlayson described the Dacian deal as a
conditional off-market takeover which car- “natural fit” for Genesis, especially with the
ries an implied equity value of $111 million. company’s 2 moz resource at Ulysses ripe
In announcing the proposed merger and for mining and processing.
accompanying $100 million capital raise, “This transaction is the first step towards
Genesis confirmed it had also resumed our vision of building the premium Austral-
negotiations with St Barbara over “regional ian gold miner, targeting plus-300,000 ozpa
consolidation opportunities” after initial dis- of sustainable, high quality gold produc-
cussions between the two companies re- tion,” Finlayson said.
portedly broke down in early June. “Sensible M&A is a key component of
St Barbara also confirmed the talks were our multi-pronged growth strategy and our Raleigh Finlayson
back on, but stressed no agreement had team has a strong track record of execut- Genesis board, with Tommy McKeith and
been reached and there was no guarantee ing transactions that deliver outstanding Nev Power stepping aside as non-execu-
of one being struck. value for shareholders. Consolidation of tive directors.
Speculation of large-scale consolidation the world-class Leonora district is a natural Wilkes urged Dacian shareholders to ac-
around Leonora has been rife for several fit for Genesis. cept Genesis’ implied offer of 10.2c/share.
months since former Saracen Mineral Hold- “The complementary nature of the com- “Since pouring first gold in March 2018,
ings and Northern Star Resources Ltd boss bined company’s significant resources and Dacian has produced over 500,000oz from
Finlayson assumed the managing direc- infrastructure, exploration upside and other its Mt Morgans operations, yet has contin-
tor’s position at Genesis and unveiled plans regional growth opportunities make this ued to face operational challenges in the
for his new company to quickly become a the right deal for both Genesis and Dacian current environment that led to a review of
300,000 ozpa gold producer despite not shareholders.” the operating strategy and the decision to
owning any processing facilities. Genesis intends to conduct a strategic suspend mining activities,” he said.
The proposed acquisition of Mt Morgans review of Mt Morgans over the next six “This transaction secures the company’s
months to determine the promising future, provides capital to con-
best opportunity for a restart duct and accelerates our extensive drilling
of operations. campaign to test the potential for a large-
Should the merger be scale, open-pit mining operation at Jupiter
successful, Dacian share- and allows Dacian shareholders to benefit
holders will emerge with from the significant potential regional con-
about 25.5% of the com- solidation opportunities on offer as share-
bined entity. The offer re- holders in the enlarged Genesis entity.”
mains subject to a minimum Meanwhile, St Barbara finished FY2022
50.1% approval and other on a high after delivering its best quarterly
market standard conditions. output of the period and meeting the re-
Dacian chairman Mick vised annual production guidance.
Wilkes will be invited to join Group production across the company’s
the Genesis board upon three assets totalled 280,746oz gold, head-
completion of the merger, lined by a contribution of 191,459oz from its
while chief executive Dale Leonora operations.
Richards – who was only St Barbara boasts the largest resource
recently elevated to the role base (10.3 moz) in the Leonora district,
following the resignation of with the underground mine portal construc-
managing director Leigh tion at the newly acquired Zoroastrian de-
Junk – is set to be appointed posit expected to begin early next year. The
chief geologist. company is also looking to expand capacity
Former Saracen chair- at its Gwalia processing plant from 1.4 mtpa
man Tony Kiernan will also to 2.1 mtpa.
renew ties with Finlayson
Genesis is set to acquire Dacian’s struggling Mt Morgans and head up the new-look – Michael Washbourne
operations via a recommended takeover valued at $111 million

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