Saracen revises terms for Bundarra buy

PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings has amended the terms of its proposed acquisition of fellow ASX-listed Bligh Resources’ Bundarra gold project, in Western Australia, after Zeta Resources last week launched a cash takeover for Bligh.

Saracen was to buy Bligh’s interest in the Bundarra gold project for A$8.5-million in a share deal. However, last week Bligh shareholder Zeta launched a 3.5c-a-share all-cash takeover offer for Bligh, on the condition that the Bundarra sale did not proceed.

Zeta argued that Saracen’s share value had declined between the 15 days leading up to the offer and mid-April, with the implied value of Saracen’s offer declining from 3.8c a share for Bligh shares, to 3.2c a share.

Saracen has now amended the terms of its Bundarra offer, agreeing to issue Bligh some 71.4-million shares at settlement of the transaction. If the value of those shares, determined by multiplying the number of shares to the volume-weighted average price of Saracen’s shares over the five days ending on the trading day before the date of settlement, is less than A$9-million, the gold miner will pay the difference.

If the value of the shares is determined to be greater than A$9-million at the time of settlement, no additional amount will be paid.

Saracen has said that the revised proposal will be the company’s last and final offer for the Bundarra project, with the transaction still subject to shareholder approval.

Bligh directors have urged shareholders to accept the Saracen offer in lieu of the current Zeta offer, saying that it was, on balance, superior.

The Bundarra project has a mineral resource of some seven-million tonnes, grading 1.9 g/t gold for 431 000 oz. The project is located some 30 km south of Saracen’s Thunderbox project and will increase the company’s mineral resource within trucking distance of the Thunderbox and Carosue Dam plants by around 5%, to 8.8-million ounces.