Macmahon admits to takeover talks with GBF Mining

GBF and Orminex joint venture project, the Comet Vale. Image: Orminex

Macmahon Holdings has confirmed market speculation about a potential takeover of GBF Underground Mining that would give it stronger access to the Goldfields region in Western Australia.

GBF boasts a strong client portfolio that includes Newmont Goldcorp, Newcrest Mining and BHP, supported by a workforce of more than 350 employees.

The target has confirmed the potential deal with strategic partner Orminex, with which GBF shares a mineral ventures model. GBF founders Ross Graham and Michael Foulds are major shareholders of Orminex.

“GBF has advised Orminex that it is in discussions with Macmahon, and more importantly it has advised Orminex that the operation of the strategic alliance will continue, irrespective of whether a transaction is finalised in relation to GBF,” Orminex chairman Daryl Henthorn said. “It’s business as normal.”

The joint venture partners will continue to develop the Comet Vale mine, having recently acquired the high-grade Penny’s Find gold mine near Kalgoorlie and continue to assess other potential mineral venture opportunities.

Macmahon said it regularly examined acquisition opportunities as part of ‘normal business planning’, and advised shareholders to be cautious in trading on market speculation given no certainty that a transaction would go ahead.

Should Macmahon proceed to a final deal with GBF ‘or any other acquisition’, it would fund the acquisition through cash and debt facilities.

Acquisition talks between Macmahon and GBF are reportedly in the early stages. Both companies have not yet agreed any terms or entered into any binding documentation.

GBF is currently active at the Barton’s project (Millennium Minerals) in Nullagine, the Deflector project (Doray Minerals) in Yalgoo and Comet Vale project (Orminex) in Menzies.

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