Emerald Resources is set to acquire Bullseye Mining Limited, an Australian unlisted public company, in a deal valued at at approximately $117 million.
Emerald Chairman, Simon Lee, said the Bullseye Mining acquisition aligned with the company’s strategy of becoming a multi-gold project Company.
“The combination will create a gold exploration and production company with a diversified asset base, strong balance sheet, solid and recurring revenue, with significant cost savings and operational synergies,” Mr Lee noted.
“The Bullseye mining team have done a highly commendable job in consolidating the entire Dingo Range greenstone belt and identifying and developing resources.
“We see the strong probability of expanding these resources through the inclusion of results from the completed 35,000m of drilling and infill and extensional drilling campaign planned for 2022 as a step in the Company’s aims to define, build and operate a second gold mine in the coming years.
“Our highly credible development and geological team are looking forward to the opportunity to collaborate with Bullseye’s exploration team to maximise the possibilities of this significant gold asset.”
Bullseye Chairman, Peter J Burns, said the offer (A$0.30 per share) is unanimously recommended by the company Directors.
“This transaction brings many benefits to Bullseye shareholders, including significantly de-risking project financing and project development/implementation risks by providing exposure to Emerald’s highly experienced and proven operational team,” Mr Burns explained.
“The proposed Offer provides Bullseye shareholders with an attractive value proposition, including exposure to Emerald’s strong cash producing Okvau Gold mine and also provides Bullseye shareholders with liquidity to their investment via the ASX.
“The Board of Bullseye unanimously recommended this compelling Offer and encourage all Bullseye shareholders to accept the Offer in the absence of a superior proposal.”