Not entirely unexpected. Both St Barbara and Genesis have confirmed they were in M&A discussions for a number of months, even prior to Genesis launching their bid to acquire Dacian Gold (DCN) which is almost complete now.
The merger is being done by SBM acquiring GMD and is obviously unanimously recommended by both company's boards. It will be interesting to see if any other bids emerge, and also how the SBM CR goes to fund the acquisition.
Disclosure: I hold SBM shares.
Ex-Saracen and Northern Star MD Raleigh Finlayson to head ("cornerstone") a strategic development package with Genesis Minerals.
I've got little understanding of GMD but I am sure we can all agree that big fish attract attention; that’s clearly evident here.
Very similar to Bill Beament moving across to VXR earlier this year.
Throw in ex FMG MD and CEO and you’ve got a management team that knows how to move and shake in the industry, and deliver at a large scale.
One to watch, you’d be fortunate to have a current position, and a speculator in the management team alone to jump in today.
No position, other than working in the industry.
GMD reported an updated resource estimate, with total Ulysses Resource upgraded to 1.6 M oz, from 0.9 M oz, in Dec 2019.
Assuming that 60% of the 1.6 M oz of gold is mineable, GMD is valued at around $140 per mineable ounce. Seems fairly cheap for a late stage explorer.
1) Feasibility study to be issued by end of June 2021.
2) Continued explorative drilling to expand resource
Encouraging results from Clarke, with shallow, high grade strikes in 19 of 27 RC holes drilled and essayed to date.
Reults will be incorpated into updated Mineral Resource Estiatme to be released next month, which in turn will inform the mine feasibility study to be completed this year.
Disc - Hold tiny position.