Dacian Gold Ltd. and NTM Gold Ltd. have agreed to a merger, which will combine two complementary West Australian gold companies and leverage Dacian’s operational expertise and processing infrastructure to unlock the development potential of the Redcliffe Gold Project through regional consolidation, according to the companies. Dacian Gold owns the Mount Morgans Gold Operation, while NTM Gold’s main project is the Redcliffe Gold Project.
Under the agreement, each NTM shareholder will receive 1 Dacian share for every 2.7 NTM shares. Upon completion, Dacian will hold 68.4%, while NTM will hold 31.6% of the merged company.
The NTM Board unanimously recommended that shareholders vote in favor of the merger. NTM shareholders, including all NTM directors and the two largest shareholders, Empire Resources Group (13.7%) and DGO Gold Ltd. (13.6%), intend to vote all the shares that they hold in NTM in favor of the scheme.
“This merger will create value by delivering on our strategy of extending mine life, diversifying our production base and increasing operational flexibility at Mount Morgans,” Dacian Managing Director Leigh Junk said. “This is a logical step for Dacian to expand operations in our region by unlocking resources within haulage distance of our substantial processing infrastructure, enabling future resource and reserve additions to be brought quickly into production.”
NTM Managing Director Andrew Muir said, “This is a compelling transaction for NTM and provides the financial, processing and operating strength to unlock the value of the Redcliffe Gold Project.”