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.
