Dominion Mining Ltd., an Australian gold producer, rose the most in four years in Sydney trading after agreeing yesterday to a A$340 million ($334 million) share-based takeover bid from Kingsgate Consolidated Ltd.
Dominion closed up 16 percent at A$3.16 on the Australian stock exchange, the biggest gain since Oct. 19, 2006. Kingsgate fell 9.4 percent to A$10.61, the most since Dec. 4 2008. Kingsgate offered 0.31 of its shares for every one Dominion share. The bid, based on today’s closing prices, values Dominion at A$3.29 a share.
Dominion owns the Challenger gold mine in South Australia and gold and base metals projects in Western Australia. Sydney-based Kingsgate, the second-largest gold producer by market value on the exchange, operates the Chatree mine in Thailand.
Global gold mining takeovers are at a record this year as producers are discovering less metal while the bullion price has advanced each year since 2001.