Avesoro Resources shareholders granted more time to decide on takeover

Cecilia Jamasmie | November 25, 2019 | 6:25 am Intelligence Markets Africa Gold

Crushing circuit at New Liberty mine, in Liberia. (Image courtesy of Avesoro Resources.)

Shareholders in West Africa-focused gold miner Avesoro Resources (TSX, AIM:ASO) have been granted more time by the company’s controlling shareholder to decide on a takeover offer submitted in October.

The bidder, UK-based Avesoro Jersey, already has a 72.9% stake in Canada’s Avesoro Resources and is offering £1 (about $1.20) per each share of the miner it doesn’t already own.

Investors in the takeover target, which originally had until Nov. 22 to approve or reject the offer, now can cast their vote until Dec. 3, by 5pm ET.

Investors now have until Dec. 3, by 5pm ET, to cast their vote, but at least 85% of them has already accepted the deal.

It’s estimated, however, that at least 85% of Avesoro Resources’ shareholders has already accepted the deal.

The Toronto-based gold producer has faced a number of challenges in recent months, including having to temporarily shut its Youga mine in Burkina Faso after an illegal miner was shot dead on site by a security guard.

Avesoro also had to suspend work at its New Liberty mine this year due to heavy rainfall flooding the pit, which hindered gold shipments from the mine.

In early October, a pit wall collapse forced the company to halt production again at the Liberian mine.

As a result, Avesoro cut annual output guidance for both mines, which are now forecast to produce between 140,000 and 145,000 ounces this year, down from the 180,000-200,000 ounces estimated in September. That compares to 220,000 gold ounces the New Liberty and Youga churned out in 2018.