SYDNEY, AUSTRALIA: Genesis, a mining company, wants to buy all the shares of Dacian, another mining company, that it does not own yet (about 80% of Dacian’s shares). Genesis has made a formal offer to Dacian’s shareholders, which has been approved by Dacian’s board. The offer is as follows:

• For each share of Dacian that they own, the shareholders will get 0.1685 shares of Genesis. This means that each Dacian share is worth $0.235, and the total value of Dacian is $286 million.
• If Genesis gets more than 95.1% of Dacian’s shares, the shareholders will get 0.1935 shares of Genesis for each share of Dacian. This means that each Dacian share is worth $0.27, and the total value of Dacian is $328 million. This is a very good deal for the shareholders, as it is much higher than the current market price of Dacian’s shares, which was $0.125 on October 13, 2023.
• The offer is valid only if Genesis gets at least 90% of Dacian’s shares.
• Genesis has already secured the support of some of Dacian’s shareholders, who own about 1.66% of Dacian’s shares.

Dacian Independent Non-Executive Chairman, Craig McGown, said of the Offer: “In addition to a significant premium, the Offer provides Dacian shareholders with the opportunity to become shareholders of a company with significantly increased scale and demonstrated operational capability that is focussed on the Leonora and Laverton regions of Western Australia.

“On successful completion of the Offer, Dacian shareholders will continue to have exposure to the future upside associated with Dacian’s assets which ore highly complementary to Genesis’ existing portfolio, whilst mitigating and diversifying their risks by becoming part of a larger, and more diversified gold company.

“The Independent Board Committee of Dation has carefully considered the Offer and encourages all Dacian shareholders to accept the Offer, in the absence of a superior proposal and subject to an Independent Expert concluding and continuing to conclude that the Offer is fair and reasonable or not fair but reasonable.”

Dacian Gold Limited and Genesis Minerals Limited to merge