Emerald Resources (ASX:EMR) to buy Bullseye Mining

• Emerald Resources (EMR) will move ahead with its planned acquisition of Bullseye Mining for $117 million
• The gold explorer will issue one new EMR share for every 3.43 Bullseye shares held, after the unlisted company recommended the takeover
• Once completed, Emerald will own another 1200 square kilometres of landholding and three gold projects, including the North Laverton Gold Project
• This asset in Western Australia captures the entire Dingo Range Greenstone Belt, which EMR says is one of the few underexplored belts left in WA
• Shares in Emerald Resources have been trading up 2.82 per cent at $1.10 per share

Emerald Resources (EMR) will move ahead with its planned acquisition of unlisted business Bullseye Mining for $117 million.

EMR will issue one of its own shares for every 3.43 Bullseye shares held, now that the private company’s board has recommended the takeover.

Based on Emerald’s five-day volume weighted price of $1.03, that values Bullseye shares at 30 cents each.

The gold explorer is interesting in buying Bullseye for its 1200 square kilometres of landholding and three gold projects, including the North Laverton Gold Project.

The project in Western Australia captures the entire Dingo Range Greenstone Belt, which EMR said was one of the few underexplored greenstone belts left in WA.

“The Bullseye Mining acquisition aligns with our strategy of becoming a multi-gold project
company,” Emerald Resources Chairman Simon Lee said.

“The Bullseye mining team have done a highly commendable job in consolidating the entire Dingo Range greenstone belt and identifying and developing resources.”

Once the deal is completed, EMR is planning to carry out additional drilling to test and expand the resource at North Laverton.

In 2015, the project was assigned an Indicated and Inferred Mineral Resource Estimate of 276,000 ounces at 2.51 grams per gold tonne.

Shares in Emerald Resources were trading up 2.82 per cent at $1.10 per share at 12:25 pm AEDT.