Genesis Minerals has extended the deadline for its takeover offer to 5pm (WST) on Monday, November 21.
With a 76.1 per cent interest in the Dacian, Genesis plans to secure all of the Western Australian-based gold development and exploration company.
Dacian Gold has established a Related Party Transaction and Conflicts of Interest Policy to ensure any proposed arrangements with Genesis are negotiated on an “arm’s length basis” and on reasonable commercial terms with protocols in place to manage conflicts of interest.
While the takeover continues, both companies say they have identified numerous group cost synergies:
A secondment agreement under which certain Dacian Gold employees are seconded to Genesis on full cost recovery basis
A management services agreement under which Dacian Gold provides Genesis with certain accounting, administrative and IT system services on a cost plus basis maintaining individual company integrity
A management services agreement under which Genesis provides Dacian Gold with certain corporate development, investor relations and engineering services on a cost plus basis
A sub-licence agreement under which, subject to lessor and head lessor consent, Dacian grants Genesis a non-exclusive sub-licence to co-occupy Dacian Gold’s sub-leased office in Perth, with Genesis to pay a share of Dacian Gold’s office costs
Dacian chief executive officer Dale Richards said it was logical for Dacian and Genesis to work together to seek out all combined savings and synergies.
“Early initiatives including the reduction of fixed costs through implementation of shared systems, and collaboration between technical talent within the group will prove to be beneficial for shareholders,” he said.