Mako Gold Ltd (ASX:MKG) Announces Merger with Aurum Resources
Takeover Agreement
Mako Gold Limited (ASX:MKG) has entered into a Bid Implementation Agreement with Aurum Resources Limited (ASX:AUE) for an off-market takeover bid. Aurum now holds 90.23% of Mako shares and can proceed with compulsory acquisition of the remaining shares.
The merger aims to establish an exploration and development gold business in West Africa with a cash reserve exceeding A$20 million, dedicated to the Napié and Boundiali Projects.
Shareholder Benefits
Mako shareholders will be offered 1 Aurum share for every 25.1 Mako shares, equating to approximately $0.018 per share, marking a 112% premium based on the 30-day volume weighted average price (VWAP). Through the proposed merger, Mako shareholders will own 20.5% of the combined entity.
Operational Developments
In terms of exploration, Mako has reported significant rock chip results from its Napié Gold Project, including assays up to 170g/t Au from the Komboro Prospect. This demonstrates the potential for further resource growth in the area.
The merger boosts Aurum’s operational capacity with six drill rigs at the Boundiali Project and plans for two additional diamond drill rigs post-merger.
Financial Outlook
As for financial health, Mako reported a cash balance of A$0.64 million at the end of December 2024, supplemented by an interim loan facility of A$1.5 million from Aurum during the takeover process. Mako has drawn down A$500,000 of this facility thus far.
Mako’s management highlights the strategic benefits of the merger, which unites their exploration efforts and resources in the highly prospective gold region of Côte d’Ivoire.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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