Kin and its 32% shareholders, Deutsche Balaton, Delphi and associates, first emerged with a 5.1% stake in Dacian earlier this month after it revealed they had started buying shares on-market in early August.
Yesterday it was revealed they had increased their stake to 6.87% after on-market purchases last week.
In its quarterly report, released yesterday, Kin said it held 1.95% of Dacian in its own right.
“The Kin board considers that accumulating an interest in one of the areas gold producers and participants in the consolidation of the Leonora mining district that is currently unfolding is a sensible strategic move and that the current market price of Dacian shares represents good value,” Kin said.
Genesis holds 75.08% of Dacian as part of a scrip takeover first announced in early July.
The offer was due to close yesterday but has been extended by a further week to close of business next Monday.
Genesis can only move to compulsory acquisition if it reaches 90% of Dacian.
It warned that if it didn’t reach 90%, it may apply to delist Dacian from the ASX.
“Given the strategic rationale of the two entities combining, as well as the clear support from the Dacian board, we remain confident Genesis will be successful in acquiring 100% of Dacian,” Canaccord Genuity analyst Tim McCormack said.
He forecasts first production from the combined Dacian and Genesis assets in the December quarter of 2023.
Dacian shares rose as high as 15.5c today, the highest since before the takeover was announced. At the last traded price of 14c, the company was valued at nearly $170 million.
Genesis closed 8% higher at $1.15, giving it a market cap of $385.5 million. Canaccord has a buy rating and $2.25 price target.
Kin has a current market cap of around $80 million and finished September with nearly $12.7 million in cash.
