Saracen (SAR) has made an all-scrip off-market takeover offer for Bligh Resource (BGH). The offer is 0.369 SAR shares for every 1 BGH share, valuing the Company at $38.2m. BGH has owns the Bundarra Project, located 30km south of SAR’s Thunderbox Operation (TB). Bundarra has a 660koz resource grading 2.1g/t spread over several deposits. Recent transactions incorporating Australian domiciled gold assets average $30/oz vs $58/oz for this acquisition. Give the proximity and synergies with TB, we regard this as a positive, strategic transaction. The key target of this acquisition is the Wonder North deposit with a resource of 469koz @ 2.2g/t incorporating a higher-grade core grading +5.0g/t. This offer follows the recent acquisition of Hawthorn Resource’ (HAW) Box Well and Deep South mining projects for $13.5m cash (~200koz). These assets are near Carosue Dam Operations, highlighting SAR’s appetite to consolidate ounces around its operating mills.
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