Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
Australia’s St Barbara Ltd said on Monday it will not engage further with Silver Lake Resources Ltd regarding its A$707 million ($480 million) offer for the gold miner’s Leonora assets, rejecting the revised bid.
St Barbara cited a lack of synergies in rejecting gold producer Silver Lake’s revised offer for the Western Australia assets and said it did not deliver sufficient cash to the company to meet its future liquidity requirements.
St Barbara said it would continue to back a A$600 million proposal for the same assets from Genesis Minerals Ltd.
The company also executed a binding agreement with Genesis to amend its offer. Under the deal, Genesis will issue an additional five million shares upfront to St Barbara upon acquiring the Leonora assets.
The Leonora assets involved in the deal include the Gwalia underground mine and processing plant and nearby development opportunities.
Silver Lake’s revised bid included A$326 million in cash and 327.1 million shares valued at A$381 million to be issued to St Barbara shareholders.
($1 = 1.4743 Australian dollars)
(By Echha Jain; Editing by Kim Coghill and Muralikumar Anantharaman)
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