Kumba Iron Ore sees new South Africa government open to rail reform
The Anglo subsidiary was already working with the previous administration on ways to improve the crucial infrastructure.
Vancouver-based Riverstone Resources (TSX VENTURE:RVS) signed Thursday a deal to acquire Blue Gold Mining (TSX VENTURE:BGX), in an all-share deal valued at $30.3 million, which will allow the new company to strengthen its exploration and near-term production activities at properties in Burkina Faso, West Africa.
Blue Gold shareholders will get 0.801 of a Riverstone share for each Blue Gold share held, with the exchange ratio reflecting their volume weighted average prices for the 20 trading days that ended Wednesday.
The firms said the basic equity value of the agreement, which gives the combined entity a cash position of $18 million, is $30.3 million.
By partnering, Blue Gold and Riverstone said they will have a “proven team” to drive exploration and near-term production at properties in West Africa.
“[The deal] gives Blue Gold access to Riverstone’s four projects, including the development-stage Karma project, and its exploration, engineering and development team. Meanwhile, Riverstone gains access to Blue Gold’s technical and exploration experience, broad investment community following and strong cash position,” said a spokesperson for he companies.
Riverstone owns the Karma project, an advanced-stage gold project, as well as three other earlier stage exploration properties, covering a total of more than 2,000 square kilometres in Burkina Faso.
With the acquisition, Riverstone said it will gain access to Blue Gold’s “highly regarded” technical, exploration and capital markets team, which was central in advancing eight significant deposits through Fronteer Gold,- bought by Newmont Mininglast year for $2.3 billion.
Riverstone’s president and CEO, Dwayne Melrose, said the merger with Blue Gold was “truly complementary.”
“It creates a well-funded, well-structured company with expanded expertise as we progress our flagship Karma Project through feasibility and launch an aggressive exploration campaign at Liguidi and our other portfolio projects.”
Blue Gold’s president and CEO, Mark O’Dea added: “Combined, the companies have the expertise and access to capital necessary to accelerate expansion and development of Riverstone’s exceptional gold properties in a mining-friendly jurisdiction in West Africa.
