Tribal warfare kills at least 20 near Porgera mine in PNG, estimates UN
The mine was briefly forced to cease operations as the fighting intensified, according to media reports.
Pasofino Gold (TSXV: VEIN) says it has received a $75 million (C$101 million) cash offer to buy the company from an unnamed arm’s-length party. The potential deal is the result of Pasofino’s ongoing strategic process to secure funds for its Dugbe gold project in Liberia.
In a press release Monday, Pasofino said it has given the potential buyer an exclusivity period until November 7 to firm up its interest. The offer is subject to the buying party and its financing partners being satisfied with their due diligence.
Upon receiving all required approvals, the parties expect to enter into a definitive agreement in the fourth quarter of 2024, Pasofino said.
The proposed offer represents a purchase price of $0.66 (or C$0.907) per Pasofino share, which represents an approximate 20% premium on its current trading price of C$0.75 on the TSX Venture Exchange. Its market capitalization is about C$84 million.
Pasofino has been looking to enhance the value of its Dugbe project by securing funding for the various optimization initiatives outlined in its feasibility study in 2022. These include a review of the initial capital cost and operating costs assumed in study and the mine’s energy supply.
Disclosure of the offer, said the company, would allow it to undertake a financing to advance the Dugbe project.
The Dugbe project is situated within the Birimian geological province, which is host to the majority of West African gold deposits. The property covers 2,559 km2 and contains two deposits that are 4 km apart, both discovered by its previous partner and now majority shareholder Hummingbird Resources (AIM: HUM).
The 2022 feasibility study outlined a open-pit mineral reserve estimate of 2.76 million oz. of gold, planned to be mined over 14 years, with an output of 200,000 per annum for the first five years.
In late 2023, Pasofino took full ownership of the project after acquiring Hummingbird’s 51% interest.
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