Dacian, Genesis identify synergies in extension of tender offer
Genesis Minerals has extended the deadline for its tender offer to Monday, November 21 at 5:00 p.m. WST.
With a 76.1% interest in Dacian, Genesis plans to secure the entire Western Australia-based gold development and exploration company.
Dacian Gold has established a Related Party Transactions and Conflicts of Interest Policy to ensure that any proposed agreements with Genesis are negotiated on an arm’s length basis and on reasonable commercial terms, with conflicts of interest management protocols in place.
While the acquisition is ongoing, both companies say they have identified numerous cost synergies across the group:
- A secondment agreement under which certain Dacian Gold employees are seconded to Genesis on a full cost recovery basis
- A management services agreement under which Dacian Gold Genesis provides certain accounting, administrative and IT system services on a cost-plus basis to maintain the integrity of the individual company
- A management services agreement under which Genesis Dacian Gold will provide certain business development, investor relations and engineering services on a cost-plus basis
- A sub-license agreement whereby Dacian grants Genesis a non-exclusive sub-license to share Dacian Gold’s sub-let office in Perth, subject to the consent of the landlord and main tenant, with Genesis paying a share of Dacian Gold’s office expenses
Dacian Chief Executive Officer Dale Richards said it makes sense for Dacian and Genesis to work together to find any combined savings and synergies.
“Early initiatives, including reducing fixed costs through the implementation of shared systems and collaboration between technical talents within the group, will prove beneficial to shareholders,” he said.
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