Aurum-Mako merger creates West African gold firm
Australia-listed Aurum Resources and Mako Gold have announced an agreement to merge, creating an emerging exploration and development gold business in West Africa.
The merged company will have two key gold projects in Côte d'Ivoire, with about A$20-million in cash to deploy into rapid work programmes across its assets.
In terms of the agreement, Aurum will bid for all the shares and option in Mako, with Mako shareholders receiving one share for every 25.1 shares held.
Based on the five-day volume weighted average price (VWAP) for Aurum shares of A$0.455, the offer represented a 100% premium to Mako’s five-day VWAP share price.
The bid received the unanimous support of Mako directors.
The enlarged Aurum will hold 868 000 oz at 1.20 g/t gold maiden resource at the Napie project, while a maiden mineral resource estimate for the Boundiali gold project is targeted for late this year.
The Napie project is located along the same belt as the 3.4-million-ounce Abujar mine, discovered by Tietto Minerals.
“The Aurum team is excited to apply our skills at the Napie project, which we consider has great potential to quickly evolve into a multi-million-ounce project with a dedicated owner-operated multi-rig drilling programme which can be delivered at a cost significantly below standard contract rates,” says Aurum MD Caigen Wang.
He added that Aurum believed there were strong similarities between Napie and the Abujar project, where the Aurum executive team, when running Tietto, were able to rapidly grow resources to 3.8-million ounces and propel Abujar into production before being acquired for A$768-million.
The merged company will be led by Troy Flannery as nonexecutive chairperson, Wang as MD, Mark Stizek as executive director and Mako’s Steven Zaninovich as nonexecutive director.
Aurum shareholders will hold about 79.5% and Mako shareholders will hold about 20.5% of the merged company.
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