Acquisition of Atlantic Gold over
A subsidiary of St Barbara has acquired 100% of the outstanding common shares and options of Atlantic Gold for A$780 million (C$723 million) under a Canadian plan of arrangement. Further details of the acquisition, including its strategic and financial benefits, are set out in the corresponding announcement and presentation of 15 May 2019.
Key benefits from the acquisition of Atlantic Gold include, 1:A long life operation, with an existing mine life of 12 years and substantial reserves and resources; 2: Diversification of St Barbara’s production base with a low cost asset in a favourable jurisdiction; 3: Significant growth potential through planned resource and reserve expansion as well as near mine exploration.
4: A platform for future growth in an attractive mining jurisdiction with low geopolitical risk; 5: Retention of key Atlantic Gold executives and the operating team to ensure continuity of operations and relationships with key Canadian stakeholders.
St Barbara commenced the integration process in May 2019 and will continue to work closely with the ongoing operating team to efficiently integrate Atlantic Gold into St Barbara. Commenting on the transaction, St Barbara MD & CEO, Bob Vassie, noted: “Atlantic Gold ticks all the boxes for St Barbara.
I am confident Atlantic Gold will deliver long term value for St Barbara shareholders because it diversifies St Barbara’s production base with a low cost, high margin, long life mine and a quality growth pipeline in a very favourable and prospective region.
The acquisition also brings Atlantic Gold’s operating team, who have an excellent track record of project delivery and operating performance. When the time is right, we will be well placed to consider other North American growth opportunities.”
