The Raleigh Finlayson-led Genesis Minerals has pulled off a deal to consolidate gold assets in the historic mining precinct of Leonora in Western Australia through a merger with St Barbara.known as Hoover House, a nod to former US president Herbert Hoover who worked in the WA goldfields in the 1890s.
Under the scheme of arrangement, Genesis shareholders would receive 2.034 new fully-paid shares in St Barbara for each Genesis share. The acquisition of Atlantic Gold in May 2019 has proved a millstone around St Barbara’s neck and one of the factors that has dragged down the company’s valuation. “Shareholders will reap the benefits of more production at lower cost and lower risk from this prolific mining district.
“By combining with St Barbara, we are creating Hoover House, the premium Australian gold company we envisaged, with sustainable, high-quality production,” he said.A is a key component of our multipronged growth strategy, and our team has a strong track record of executing accretive transactions. Consolidation of the world-class Leonora district is a natural fit for Genesis.