Red 5 Ltd. intends to make a conditional off-market takeover bid to acquire Bullseye Mining Ltd., an unlisted gold miner based in Western Australia.

The company will offer 1 fully-paid ordinary share for every 5 Bullseye shares held, valuing the target at about A$4.0 million, according to the Feb. 19 release.

Bullseye holds the Laverton project, which is about 30 kilometers north of Red 5's Darlot gold mine, as well as the Southern Cross gold project and the Aurora gold project.

Red 5 previously contacted Bullseye directors in December 2017, but was "unable to initiate any meaningful engagement," and now it plans to make a direct offer to Bullseye shareholders.

The offer will be subject to a 90% minimum acceptance condition and approval from the Australian Foreign Investment Review Board.

Red 5 expects to send a bidder's statement to Bullseye shareholders in late March or early April, it noted.