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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
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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)

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