Resources Top 5: Genesis goes in deep for Dacian Gold with takeover bid
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Here are the biggest resources winners in early trade, Monday October 16.
It’s a big day for DCN shareholders, because Genesis is In Too Deep, has Turned it on Again… and has given Dacian its Invisible Touch (whatever that means – it’s actually transparent) with a takeover bid a long time coming.
Mainstream ’80s music referencing aside, Dacian Gold’s share price is up big time today on news Raleigh Finlayson’s $1.47b market capped gold miner Genesis Minerals (ASX:GMD) has put together an off-market takeover bid for the remaining 20% worth of DCN shares it doesn’t already own.
This has been a potential outcome for Genesis and Dacian for some time now and finally looks to be happening. At the time of writing, DCN has mooned up the ASX with an 84% rise.
Dacian Gold is a WA-focused goldie with a market cap of almost $280m at the time of writing, and boasts a 2.9Mtpa processing facility and highly prospective land package in the Leonora/Laverton region.
Dacian shareholders who accept the offer ought to do pretty well out of the deal with 0.1685 new Genesis shares for every 1 Dacian share they hold. The company notes the offer consideration implies a value of $0.235 per Dacian share and a total equity valuation for Dacian of A$286 million.
Regarding the offer, Craig McGown, Dacian Independent Non-Executive Chairman, said:
“In addition to a significant premium, the offer provides Dacian shareholders with the opportunity to become shareholders of a company with significantly increased scale and demonstrated operational capability that is focused on the Leonora and Laverton regions of Western Australia.
“On successful completion of the offer, Dacian shareholders will continue to have exposure to the future upside associated with Dacian’s assets which are highly complementary to Genesis’ existing portfolio, whilst mitigating and diversifying their risks by becoming part of a larger, and more diversified gold company.”
It’s a big premium, designed to pull the holdouts from last year’s takeover of the underperforming Leonora-Laverton gold producer to the table. Notably Kin Mining (ASX:KIN) and its major German shareholder Wilhelm Zours formed a blocking stake of more than 10%.
Dacian will need 90% of the company or above if it hopes to seal the deal and compulsorily acquire the shares of the remaining holdouts, taking Dacian off the ASX and giving it full rein to plug its Mt Morgan processing plant into a Leonora gold consolidation play centred around the historic Gwalia gold mine.
DCN share price
$57m capped Kin Mining’s share price is bounding up today to the tune of about 30% at the time of writing on the back of… well you guessed it.
The junior is sucking gleefully off the teat of the Dacian Gold/Genesis offer, which has immediately ratcheted up the value of its more than 7% stake in its Leo-Laverton gold neighbour.
The company also has a 7.34% stake in Dacian’s issued capital and KIN’s major shareholder, Delphi Group, holds an additional 3.22% of Dacian.
As we said before, that’s a blocking stake. Whether Kin and Zours’ Delphi play ball is make and break for Genesis’ non-cash bid.
KIN is currently down about 24% YTD.
KIN share price
Copper, gold, nickel, tin. They’re the resources SPQ believes are superior and they’re hunting them hard in northern Queensland.
The company’s share price is well up today on news from its Cockie Creek prospect – one of several within the company’s Greenvale project. Positive new copper and gold assay results have been confirmed from the second hole drilled (CCDD002).
Specifically, Superior is talking a “relatively high grade” and broad width of porphyry copper and gold mineralisation at deeper levels: 117m at 0.52% Cu, 0.11g/t Au and 109ppm Mo from 20m (CCDD002)
The assays are also similar, but stronger, than those encountered in CCDD001, the first drill hole in the company’s first drill program at the prospect, per its reports in September.
#ASX announcement: Strong assays from Cockie Creek second hole extend porphyry Cu and Au mineralisation with higher grades and broader intersection https://t.co/oIsfyvebGB $SPQ #copper #gold #mining #investing #smallcaps #qld pic.twitter.com/1aC8KjXZfL
— Superior Resources (ASX:SPQ) (@Superior_Res) October 15, 2023
“In particular, the assays continue to confirm that the actual copper grades have consistently exceeded visual estimations of chalcopyrite mineralisation observed within the core,” notes the company.
Superior’s managing director Peter Hwang said: “Cockie Creek continues to impress with the consistent intensity and continuity of copper mineralisation being returned from each batch of assays from the labs.
“Based on our visual examinations of core from the other holes, we expect strong results to continue.”
SPQ share price
Gold-hunting junior Ballymore Resources is part of a crop of Queensland explorers hoping to make the Sunshine State a golden state once more.
Its share price is glinting nicely today on the back of “extremely high-grade gold results” with individual assays up to 2206 ppb Au (2.2 g/t) returned from soil sampling program over its Dittmer prospect, some 30-odd kilometres south-west of Prosperine in central Qld.
The prospect includes the historic Dittmer mine and numerous unexplored, historic workings in local area and the company believes the find confirms Dittmer as a major mineralised system defined by broad anomalies.
Extremely high-grade gold results with individual assays up to 2206 ppb Au (2.2 g/t) returned from soil sampling program over Dittmer prospect, including the historic Dittmer mine and numerous unexplored, historic workings in local area. https://t.co/8GVTFrmGXd pic.twitter.com/WiEZDmykrX
— Ballymore Resources (@BallymoreRes) October 15, 2023
Ballymore’s technical director David A-Izzeddin, said:
“Dittmer, our flagship project, continues to yield exciting results, returning new soil results which demonstrate its potential to host a major mineralised system similar in style to Queensland’s largest gold mine at Ravenswood.”
BMR share price
WA-based gold, nickel and lithium explorer Maximus has been very busy lately and its share price is up today on some big news regarding a strategic partnership with Korean government agency KOMIR, which represents some AUD $4.75m worth of funding.
What’s that, you say? It’s the The Korea Mine Rehabilitation and Mineral Resources Corporation which has an aim to foster sustainable development of mining and to promote a stable supply chain of critical minerals to the huge Korean market. And yep, that clearly means looking outside of Asia and into Western Australia’s land of plenty.
South Korea is home to three of the world’s five biggest electric vehicle battery manufacturers, which collectively control more than a quarter of the global EV battery market.
Interesting development then, and exciting times for Maximus, which has inked a lithium-based farm-in agreement with the Korean agency and a Non-binding Memorandum of Understanding (MOU) with LG Energy Solution Limited.
These centre around MXR’s Lefroy lithium project about 25km from Kambalda, Western Australia, in the Eastern Goldfields ‘Lithium Corridor’. Notably, this is only about 20km south of mining titan Mineral Resources’ (ASX:MIN) Mt Marion lithium mine.
According to the agreement, KOMIR will fund US$3 million (about $4.75m AUD) of lithium exploration, to earn 30% interest in a Joint Venture (JV) across the Lefroy project.
Maximus notes it will retain “a significant upside”, holding 70% interest in the lithium JV at the end of the farm-in period.
The MOU, by the way, provides global battery manufacturer LG Energy Solution with a non-binding option to acquire KOMIR’s 30% interest in the JV.
Maximus’ managing director Tim Wither said:
“This is a significant partnership for the company and is a strong endorsement of our lithium prospects with the backing from the Korean Government agency KOMIR.
“The strategic partnership allows Maximus to draw on KOMIR’s international expertise, and industry partnerships with the world’s largest EV battery manufacturers, to support future project development, production, and marketing.
“Maximus is in a very strong position with a growing gold resource of 320,600 oz on granted mining tenements, several exciting nickel prospects and now secured funding and support to advance our lithium prospects, while retaining a significant discovery exposure in one of the dominant hard-rock lithium-producing regions in the world.”
MXR share price
At Stockhead we tell it like it is. While Maximus Resources is a Stockhead advertiser at the time of writing, it did not sponsor this article.