Coal miner Golden Energy and Resources (Gear) is looking to consolidate its stake in its subsidiary – Golden Investments (Australia) – with a cash consideration of US$30 million ($41.0 million).

With this, Gear will buy out the 20.33% or 32.55 million shares in Global Investments (Australia) held by the Ascend Global Investment Fund. Presently, Gear holds the remaining 79.7% or 127.3 million shares.

Global Investments (Australia) currently holds around 75.33% of the total issued ordinary share capital of the Australian exchange-listed Stanmore Resources.

The US$30 million cash consideration price tag was arrived at on a “willing-buyer and willing-seller basis” after taking into account inter alia, the net asset value of the sale shares of Golden Investments (Australia).

In its Dec 10 regulatory filing, Gear says the acquisition – which is slated to be completed in seven days – will not have any material impact on the group’s earnings per share.

It adds that this may decrease the consolidated net tangible asset of the group by around 6.4% for FY2021 ending on Dec 31.

<span class='see_also_inread'><b>See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/news/mining/de-beers-loses-more-diamonds-botswana-last-minute-deal?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>De Beers loses more diamonds to Botswana in last minute deal</a></b></span>

Shares’s in Gear closed at 31 cents, down half a cent of 1.59%, before the announcement.

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