06:06 AM EDT, 05/20/2025 (MT Newswires) -- Xanadu Mines ( XANAF ) on Friday agreed to be acquired by Bastion Mining for A$0.08 per share in cash, a 57% premium to Xanadu's closing price on May 16 for a total equity value of A$160 million.

Bastion represents a consortium of Boroo, a private Singapore-incorporated entity that invests in gold projects, and Xanadu Director Ganbayar Lkhagvasuren. Boroo's key assets include a producing gold mine in Peru called Lagunas Norte and a portfolio of development-stage projects in South America.

Xanadu's takeover board committee recommended that Xanadu shareholders accept the offer in the absence of a superior proposal.

"Bastion's offer provides Xanadu shareholders with an attractive premium, which recognizes the company's inherent value and considerable achievements in progressing the Kharmagtai Copper-Gold Project," said Xanadu Executive Chairman and Managing Director Colin Moorhead. "Bastion is ideally positioned to advance Kharmagtai to the next stage of development with the benefit of Boroo's experience in acquiring, financing and developing mining operations in Mongolia."

Bastion will also subscribe for about 286.8 million shares in Xanadu at A$0.06 per share, representing an initial investment of A$17.2 million to fund the company's share of joint venture cash calls, working capital and associated corporate costs during the offer period.

Among other conditions, the offer is subject to Bastion acquiring at least 50.1% of Xanadu. Bastion will declare the offer unconditional once it has achieved that amount.