Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Perseus Mining bids to take over Amara in West Africa gold push

Published 29/02/2016, 09:48 am
© Reuters.  Perseus Mining bids to take over Amara in West Africa gold push
PRU
-
AMARA
-

MELBOURNE, Feb 29 (Reuters) - Australia's Perseus Mining PRU.AX has made an all-scrip bid worth $85 million to take over London-listed Amara Mining AMARA.L , looking to pool their West African gold resources as bullion prices defy gloom in the commodities sector.

Perseus said on Monday it was offering 0.68 of a new Perseus share and 0.34 of a Perseus warrant for every Amara share, which it said valued Amara at 14.6 pence a share, or 61 million pounds ($85 million), a 42 percent premium to its close last Friday.

The deal, unanimously backed by Amara's board, would give Perseus Amara's Yaoure gold project in Cote d'Ivoire, adding to the Edikan gold mine that Perseus owns in Ghana. The combined group would also have two undeveloped projects in Cote d'Ivoire and Sierra Leone.

"If approved by Amara's shareholders, the proposal will potentially transform Perseus into a leading mid-tier West African gold producer delivering significant benefits to shareholders of both Perseus and Amara," Perseus Chief Executive Jeff Quartermaine said.

($1 = 0.7217 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.