Conquest Mining (ASX:CQT) saw its shares rise as it completed its deal with Heemskirk Consolidated (ASX:HSK). As per the deal Conquest Mining will acquire 40% interest in the Pajingo gold mine.
The shares of Conquest Mining rose by 20% and ended the day at 51.5 cents while the shares in Heemskirk also rose by 2% to end at $32.
In a company statement Conquest Mining said that the strategic acquisition complements the company's current takeover offer for North Queensland Metal (ASX:NQM) which is the owner of the remaining 60% of the Pajingo gold mine.
By becoming the single owner of the mine Conquest will be able to run it in a singular and efficient manner. There will be cost savings available which are not readily there while the mine is owned jointly by more than one company.
The deal still needs to get the approval of the shareholders of both Conquest and Heemskirk. Conquest executive chairman Jake Klein said the deal was a "major breakthrough" in the company's efforts to grow into a mid-tier Australian gold company.
- Conquest to acquire 40% of Pajingo gold mine from Heemskirk for $37 million ($27 million in cash and $10 million in Conquest shares)
- Commitment from investor to subscribe for $10 million equity in Conquest planned to support the acquisition
- Conquest now well positioned to consolidate ownership of Pajingo with takeover offer for North Queensland Metals