Avesoro Resources to Acquire Youga and Balogo Gold Mines for $695 Million, Burkina Faso
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Avesoro Resources Inc. has entered into a conditional agreement to acquire the Youga Gold Mine and Balogo Gold Mine assets in Burkina Faso through the acquisition of the entire issued share capital of MNG Gold Burkina SARL, Cayman Burkina Mines Ltd., MNG Gold Exploration Ltd., AAA Exploration Burkina Ltd. and Jersey Netiana Mining Ltd. and their subsidiaries from Avesoro Jersey Limited, a related party being the majority (73.5 percent) shareholder of the company, for a total consideration of US$69.5 million.
“I am delighted to announce that we have entered into an agreement with Avesoro Jersey Ltd to acquire the Youga Gold Mine and Balogo Gold Mine in Burkina Faso. The assets will provide Avesoro with geographic diversity within West Africa and are highly complementary to our existing New Liberty mine, significantly increasing Avesoro’s gold production,” said Serhan Umurhan, chief executive officer of Avesoro.
“In addition to adding high quality exploration upside that will provide for further future organic growth. In conjunction with the turnaround at New Liberty, this acquisition marks a significant next step in achieving our long-term plan to become a premier mid-tier African gold producer,” added Umurhan.
The company has conditionally raised approximately £15.2 million (approximately US$20.0 million) through a placing of new common shares in the company to new and existing sophisticated and accredited investors at a placing price of 1.9 pence per placing share. Of the proceeds from the Placing, US$18.5 million will be used to fund the cash component of the acquisition consideration and the remainder will be used for general working capital purposes. Up to a further US$2.5 million (gross) may be raised for working capital purposes by way of a broker option, as determined by the brokers.
To read more details in the company’s press release, CLICK HERE
About Avesoro Resources Inc.
Avesoro Resources Inc. is a west Africa focussed gold mining, development and exploration company. The company’s assets include the New Liberty Gold Mine in Liberia, which has an estimated proven and probable mineral reserve of 7.4 Mt with 717,000 ounces of gold grading 3.03 g/t and an estimated measured and indicated mineral resource of 9.6 Mt with 985,000 ounces of gold grading 3.2 g/t and an estimated inferred mineral resource of 6.4 Mt with 620,000 ounces of gold grading 3.0 g/t.
The New Liberty Gold Mine is located within the Southern Block of the 100 percent owned Bea Mountain mining licence. This licence covers 478 km² and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts additional gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which host Indicated and Inferred Mineral Resources. The company also owns the adjacent Yambesei, Archaen West, Mabong and Mafa West licences, in addition to a gold exploration permit in Cameroon.
To stop by Avesoro Resources’ website, CLICK HERE
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