The St Barbara Ltd (ASX: SBM) share price is hovering in positive territory on Wednesday.
This comes after the company announced it has finalised an important acquisition, unlocking access to land packages near its Leonora operations in Western Australia.
At the time of writing, the gold miner’s shares are exchanging hands for $1.47, after reaching an intraday high of $1.50 early this afternoon.
What’s driving St Barbara shares higher?
Investors are buying up St Barbara shares following the completed acquisition of Australian gold company, Bardoc Gold Ltd (ASX: BDC).
In today’s release, St Barbara advised that implementation has occurred under the scheme of arrangement. This means that Bardoc shareholders will receive 0.3604 new St Barbara shares for each Bardoc share owned.
The transaction values Bardoc at approximately $157 million and each Bardoc share at 53 cents.
The new St Barbara shares issued under the scheme will start trading on the ASX from tomorrow.
What did management say?
Commenting on the news, St Barbara managing director and CEO Craig Jetson said:
The completion of this major milestone has allowed us to lock in the acceleration of the Leonora Province Plan.
The acquisition gives St Barbara access to the advanced Aphrodite and Zoroastrian underground deposits. Due to their proximity to road and rail infrastructure that connect them to Leonora, the deposits are expected to become additional ore sources to support the filling of the mill and the expansion to 2.1mpta.
The acquisition also included Bardoc’s land package, which Jetson said contributed to St Barbara’s “leading position in the Leonora province” and provided “a strong platform for the company to deliver further organic growth for years to come”.
About the St Barbara share price
St Barbara shares have plummeted by 30% over the past 12 months, with the year to date figure up marginally by 1%.
The company’s share price reached a 52-week high of $2.16 in early 2021 before treading on a downward path.
St Barbara commands a market capitalisation of roughly $1.04 billion based on today’s price.