Aurum Assets (ASX:AUE) and Mako Gold (ASX:MKG) mentioned on Wednesday (October 16) that they’ve come to an settlement to merge, making a West Africa-focused gold explorer and developer.
Below the deal, Aurum is proposing to accumulate Mako, with the mixed firm set to have a market cap of AU$90 million and AU$20 million in money. It’s going to advance the Napié and Boundiali gold tasks in Côte d’Ivoire.
In line with the businesses, the merger will happen by way of off-market takeover bids. Aurum will bid for 100% of Mako’s shares and 100% of its Class A Choices and Class B choices.
Aurum shareholders will personal roughly 79.5 p.c of the brand new entity as soon as the deal is full, whereas Mako shareholders will maintain the remaining 21.5 p.c. The provide is reportedly a 112 p.c premium for Mako shareholders.
“We have now at all times believed our Napié Venture has potential to host multi-million ounces of gold, and pleasingly, resulting from relative sizes of Mako and Aurum, Mako securityholders will stay a significant a part of the expanded group, and due to this fact will share within the continued upside to the expansion in Napié,” mentioned Peter Ledwidge, managing director at Mako.
Napié is Mako’s 90 p.c owned flagship venture. Its Tchaga and Gogbala deposits have an inferred mineral useful resource estimate of twenty-two.45 million tonnes at 1.2 grams per tonne for 868,000 contained ounces of gold.
Ledwidge additionally famous {that a} maiden mineral useful resource estimate for Aurum’s Boundiali asset is anticipated late this 12 months.
“Between driving progress at Napié and being properly on the trail to supply of a maiden useful resource at our personal Boundiali Venture later this 12 months, we see robust potential for Aurum to turn into a robust rising gold developer in Côte d’Ivoire with two belongings with long-life potential in shut proximity to one another,” mentioned Dr. Caigen Wang, managing director at Aurum. He added that the businesses see “robust similarities” between the 2 properties.
The companies mentioned shareholders can even profit from Aurum’s robust steadiness sheet and drilling efficiencies.
Aurum and Mako famous that the total bid implementation settlement and its phrases might be out there to the general public quickly.
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Securities Disclosure: I, Gabrielle de la Cruz, maintain no direct funding curiosity in any firm talked about on this article.
Editorial Disclosure: Aurum Assets is a consumer of the Investing Information Community. This text shouldn’t be paid-for content material.
