Genesis Minerals has upped the scrip component for St Barbara’s Leonora mine by five million shares in an effort to come out ahead of a rival bid from Silver Lake Resources.
The gold miners entered into a $600 million agreement in April this year, and while the cash component remains the same, Genesis has announced it will waive conditions around performance rights.
According the to the AFR, this leaves Genesis with a $604 million offer compared to Silver Lake’s $614 million.
Though the Silver Lake offer is higher, St Barbara has indicated that it will accept Genesis’ offer due to it being legally binding and fully funded.
“The St Barbara board has not changed its unanimous recommendation in support of the sale of Leonora to Genesis,” St Barbara said in an announcement.
“The revised transaction agreement with Genesis remains in full force and effect and the parties are proceeding in accordance with the contemplated timetable to effect the sale of Leonora.”
The Leonora operation, located in Western Australia, consists of the Gwalia underground mine and processing plant as well as nearby development opportunities.
“The acquisition of St Barbara’s Leonora assets will position Genesis as a gold industry leader with a dominant position in Western Australia’s world-class Leonora district,” Genesis managing director Raleigh Finlayson said.
“Investors are demanding sensible regional consolidation, and this deal hits the spot, targeting long-life production growth to 300,000 ounces per annum exclusively from Leonora.”