St Barbara share price higher on Atlantic Gold acquisition update

The St Barbara Ltd (ASX:SBM) share price has pushed higher after advising that its acquisition of Atlantic Gold is nearing completion…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The St Barbara Ltd (ASX: SBM) share price has pushed higher this morning following the release of an update on its acquisition of Atlantic Gold.

At the time of writing the St Barbara share price is up 1% to $3.33.

What did St Barbara announce?

This morning St Barbara announced that Atlantic Gold shareholders and optionholders have approved the Canadian plan of arrangement which will see St Barbara acquire all of the shares and options in Atlantic Gold for A$779 million.

According to the release, shareholders and optionholders resoundingly approved the arrangement at a special meeting held in Vancouver on Monday. The motion was carried on a poll with 99.6% of votes cast in favour of the arrangement.

This latest development means it is highly likely that the transaction will complete successfully in the coming days.

Atlantic Gold will now seek a final order from the Supreme Court of British Columbia on Wednesday. If successful, the Arrangement is expected to complete on Friday July 19 2019 Vancouver time, subject to the satisfaction of customary closing conditions.

In light of this, St Barbara's next announcement is anticipated to confirm completion of the transaction on Monday July 22 2019.

Why is St Barbara acquiring Atlantic Gold?

One key rationale for the acquisition of Atlantic Gold is the diversification that its gold production provides, along with its low cost, long life mine in a favourable jurisdiction

In addition to this, it provides significant growth potential through planned resource and reserve expansion as well as near mine exploration.

Elsewhere in the industry today, the S&P/ASX All Ords Gold index is up over 0.8% after the spot gold price pushed higher overnight.

Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) shares have been amongst the best performers with gains of just under 2% this morning.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

3 ASX All Ords shares up 50%+ in March

These ASX shares have been on fire this month. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Mesoblast, Patriot Battery Metals, Sigma, and Zip shares are pushing higher

These shares are having a good session on hump day. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to earth for ASX shares this Tuesday.

Read more »