Resolute Mining acquires Toro Gold for $274mn
Perth-based Resolute Mining has announced it is to acquire fellow mining company Toro Gold.
Having entered into a binding agreement, Resolute is to acquire all of Toro Gold’s shares for a total US$274mn. That figure comprises $130mn in cash as well as 142.5mn Resolute shares at a price of AU$1.45 each. Once the transaction completes, Toro Gold shareholders will own 15.8% of Resolute.
Toro Gold Chief Executive Officer and Founder, Martin Horgan, said: “Resolute’s acquisition of Toro Gold provides Toro Gold shareholders with the unique opportunity of realising immediate value for their Toro Gold shareholding in the form of partial cash consideration while becoming part of a premier African gold producer as shareholders of Resolute. The contribution of our world class Mako Gold Mine to Resolute’s high quality portfolio of large scale, long life assets creates a compelling African gold investment proposition under the stewardship of an excellent and proven management team which will further maximise value for shareholders.”
Senegal’s Mako Gold Mine is described as Toro Gold’s flagship asset, with the mine producing 156,926 ounces of gold in 2018 at a cost of $655/oz.
“The Mako Gold Mine is a high quality, strongly cashflow generative producing asset which complements our existing portfolio of large-scale, long-life mines,” said Resolute Managing Director and CEO, John Welborn The Toro Gold team discovered the Mako orebody in 2010 and have successfully developed a high value gold mine. We are delighted to combine our businesses. Senegal is an attractive investment jurisdiction for mining, and we look forward to working closely with the Government of Senegal, our 10% partner at Mako, to maximise the value within Toro Gold’s portfolio.”
Al regulatory approvals necessary for the transaction’s completion have already been acquired, and 94% of Toro Gold’s shareholders have voted in favour of the deal. The takeover is to come into effect on 2 August.