May 25, 2024

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Australia’s St Barbara rejected Silver Lake’s new bid for Leonora properties

Australia’s St Barbara rejected Silver Lake’s new bid for Leonora properties

Australia’s St Barbara Ltd said on Monday it would not enter into a bid with Silver Lake Resources Ltd for its A$707 million ($480 million) gold mine operator’s Leonora assets, rejecting a revised offer.

St Barbara cited a lack of integrity in rejecting gold producer Silver Lake’s revised offer for Western Australian properties, saying it would not provide enough cash to meet the company’s future cash flow needs.

St. Barbara said it accepted a $600 million bid for the same assets from Genesis Minerals Ltd. Continued support.

The company also entered into a binding agreement with Genesis to revise its offer. Under the deal, Genesis will preemptively issue an additional five million shares to St. Barbara in connection with its purchase of the Leonora properties.

The Leonora assets involved in the transaction include the Qualia underground mine and processing plant and adjacent development opportunities.

Silver Lake’s revised offer will pay A$326 million in cash and 327.1 million shares worth A$381 million to St Barbara shareholders.

($1 = 1.4743 Australian dollars) (Reporting by Echa Jain in Bengaluru; Editing by Kim Coghill and Muralikumar Anantharaman)