Genesis Resources (ASX:GES) has fielded an all share takeover offer from Singapore listed Blumont Group Ltd (SGX: A33/BLUM) that would value it at $0.169 per share.
ASX-listed gold explorers could be expected to be on the receiving end of further takeover offers or partial takeovers given the historically low market valuations of the majority of companies.
Genesis last traded at $0.09.
The offer is based on a share price for Blumont of S$0.073, which in Sep. 2013 was trading at $2.45. However, even at S$0.073 Blumont is valued at S$186 million relative to the market cap. of Genesis of A$14 million.
Plavica is Genesis' flagship project, hosting a JORC Mineral Resource of 1.65 million ounces of gold at 0.9 grams per tonne gold.
Also included there is an Inferred silver resource estimate of 28.2 million ounces at 15.3 grams per tonne, and an Inferred copper resource of 32.7 million pounds at 0.28%.
The project is located in the Kratovo District of north-eastern Macedonia, 65 kilometres to the east of the capital, Skopje.
Blumont will make its off-market offer "as soon as possible and in any event within 2 months."
It will offer 5.3 Blumont shares for every 2 Genesis shares currently on issue and Genesis shares that are issued under the placement announced on 23 January 2014.
The offer is subject to a number of conditions.
The directors of Genesis have indicated that they will recommend and accept the takeover bid in respect of the shares that they own or control.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.