St Barbara (ASX:SBM) is swapping out its stake in Patronus Resources (ASX:PTN) for a 14.4% interest in Geopacific Resources (ASX:GPR).
On 6 June, St Barbara revealed it saw limited opportunities to add value to Patronus. However, the company saw an opportunity to add value to Geopacific, in which Patronus owns a stake in.
As a result, Patronus agreed to a selective buyback with St Barbara of all of its 158.125 million shares, subject to shareholder approval. The amount of shares provides a 9.66% concentration of the Patronus share register.
Further, St Barbara, which has a market capitalisation of $379 million, will acquire 458.6 million Geopacific shares from Patronus in exchange for the return of Patronus’ shares.
The transaction is expected to be completed following shareholder approval at Patronus’ general meeting, which will be announced in due course.
St Barbara says this transaction aligns with the company and enhances its strategic profile of Geopacific as it advances towards development at the Woodlark Gold Project in Papua New Guinea.
The company’s existing operational presence in Papua New Guinea through its Simberi Gold Mine provides local expertise and strategic alignment with the Woodlark Project.
Geopacific Resources is a gold-focused developer that owns the 1.6 million ounce Woodlark Gold Project.
St Barbara is a gold mining company that operates in Canada and Papua New Guinea.
Write to Aaliyah Rogan at Mining.com.au
Images: St Barbara
