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Highlights
- Emerald Resources increased its direct equity stake in gold focused Bullseye Mining to 59.32%
- Emerald will use its exploration expertise to maximise the value of the Bullseye gold project
- EMR will work in sync with Bullseye shareholders to maximise the potential of its Dingo Range greenstone belt
ASX-listed gold explorer and developer Emerald Resources NL (ASX:EMR) is happy to announce the completion of the direct equity stake in Bullseye Mining Limited. By completing its earlier recommended unconditional takeover offer for Bullseye, Emerald has become a 59.3% stakeholder.
According to Morgan Hart, MD, Emerald Resources NL, the miner is looking forward to collaborating with its peer Bullseye to maximise the potential of Bullseye’s highly prospective Dingo Range greenstone belt.
On the other hand, as an Emerald shareholder, we focus on developing and commissioning the most advanced project, the Okvau Gold Mine. Located in Cambodia Emerald has now poured over 3,000kgs of gold bullion from its operations there.
How will Emerald benefit from the takeover?
Emerald recommended an unconditional takeover bid for all issued shares of Bullseye Mining Limited. With Emerald MD Morgan Hart appointed to the Bullseye Board, the administrative, financial, and operational functions of Bullseye were being transitioned to Emerald. Also, as announced on 3 June 2022, the RC drilling program by Emerald on the Boundary through Bungarra mineralised zone is budgeted at approximately AU$10 million. This was funded using Bullseye's existing cash reserves, and ongoing pro-rata entitlement offers to Bullseye shareholders. Also, by gaining control over Bullseye operations, Emerald feels it could maximise the value of highly prospective gold project areas and give an attractive investment proposition to shareholders of the Company.
Share price performance of Emerald Resources.
Shares of Emerald Resources NL, despite a seemingly positive stake acquisition, gained merely 0.85% to end todays trade at AU$1.19. However, the share price appears to have gained pace post noon.
In the last thirty days, EMR shareholders have lost around 2.46% in terms of its share price. However, on a YTD basis, EMR shares are still higher by 9.17%. Emerald, as of date, holds a market capitalisation of about AU$699.32 million. The shares are quoted at a seemingly high price-earnings ratio of 155.46. Notable peers of Emerald Resources NL on ASX are WestGold Resources Limited (ASX:WGX) and Ramelius Resources Limited (ASX:RMS).
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