USD $4,136.96
Goldman Merger to Advance Gold Projects in Côte d’Ivoire
Mako Gold Limited (ASX:MKG) and Aurum Resources Limited (ASX:AUE) have entered into a Bid Implementation Agreement (BIA) for a proposed off-market takeover by Aurum. Under this agreement, Aurum will acquire 100% of Mako’s issued shares and options. The merger aims to create a stronger exploration and development company focused on gold projects in Côte d’Ivoire, with over A$20 million in cash to accelerate both the Napié and Boundiali projects.
The merger terms offer Mako shareholders:
- 1 Aurum share for every 25.1 Mako shares, equating to A$0.018 per share.
- 1 Aurum share for every 170 Class A Options.
- 1 Aurum share for every 248 Class B Options.
Mako shareholders are set to receive a 112% premium based on the 30-day VWAP. Upon completion, Mako shareholders will own 20.5% of the merged entity, while Aurum shareholders will control the remaining 79.5%.
Aurum has six drill rigs active at the Boundiali Project and plans to deploy two new diamond rigs following the merger’s completion.
Commenting on the proposed merger, Aurum Managing Director Dr Caigen Wang said:
The Aurum team is excited to apply our skills to the Napié 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.We see strong similarities between Napié and the Abujar Project where the Aurum executive team, when running Tietto Minerals Ltd, were able to rapidly grow resources to 3.8Moz, and propel Abujar into production before being acquired in mid-2024 for over A$768 million.
We look forward to collaborating with the strong Mako technical team to marry their exploration skills with our exploration and cost efficiencies to drive benefits for all of our shareholders.Between driving growth at Napié and being well on the path to delivery of a maiden resource at our own Boundiali Project later this year, we see strong potential for Aurum to become a strong emerging gold developer in Côte d’Ivoire with two assets with long-life potential in close proximity to each other.
Commenting on the proposed merger, Mako Managing Director Peter Ledwidge said:
We are pleased to agree this deal with the highly capable team at Aurum. The Aurum executive team have a demonstrable track record of being able to rapidly and very cost effectively drill-out resources using their owner-operator model.We have always believed our Napié Project has potential to host multi-million ounces of gold, and pleasingly, due to relative sizes of Mako and Aurum, upon close of the Proposed Merger, Mako securityholders will remain a meaningful part of the expanded group, and therefore will share in the continued upside to the growth in Napié, as well as gain exposure to the rapidly evolving Boundiali Project where Aurum expects to deliver its maiden resource in late 2024.
We recommend all securityholders embrace this merger as a catalyst to unlock value from Napié.
