Perseus Mining (TSX: PRU; ASX: PRU) is acquiring Exore Resources (ASX: ERX) in an all-share deal worth A$58.9 million (US$41million).
Exore Resources' flagship Bagoe project is within 50 km of Perseus Mining's Sissingue gold mine in northern Cote d'Ivoire, and the two West Africa-focused companies see important synergies in the transaction.
"The acquisition of Exore results in Perseus gaining ownership of approximately 2,000 square kilometres of geologically prospective land in northern C??te d'Ivoire, close to our operating Sissingu?(C) gold mine," Jeff Quartermaine, Perseus Mining's managing director and CEO, stated in a news release.
By acquiring Exore's land package, Perseus will "have the option of developing the Bago?(C) project into a new gold mine potentially using the Sissingu?(C) infrastructure, or alternatively, delineating further mineral resources that can be economically mined and trucked to our Sissingu?(C) plant for processing," Quartermaine said, noting that the Sissingue operation has a mine life extending to 2023.
Exore's 80%-owned Bago?(C) project contains indicated resources of 0.75 million tonnes grading 3.5 grams gold per tonne for 90,000 contained oz. gold and inferred resources of 5.85 million tonnes grading 2.3 grams gold for 440,000 ounces. The resource is based on two deposits - Veronique and Antoninette - and starts at surface.
In addition to Sissingue, Perseus owns the Edikan open-pit gold mine in the Ashanti gold belt of southwestern Ghana and the Yaoure project in central Cote d'Ivoire, 40 km from the capital Yamoussoukro. Yaoure is expected to achieve its first gold pour in December.
Justin Tremain, Exore's managing director, said the company's shareholders will not only see potential synergies with Perseus' existing infrastructure within trucking distance of Bagoe, but "will also benefit from exposure to Perseus' existing production and development assets, which provide an exceptional growth profile."
Perseus' offer will also allow Exore shareholders to retain exposure to the junior's exploration potential, Tremain said. In addition to Bagoe, Exore owns the 559-sq.-km Liberty project, where it has defined a 20-km-long gold-in-soil anomaly along the Tongon structural gold trend, and the 380-sq.-km Tengrela project, adjacent to Bagoe. Exore has the option to earn an 80% stake in the project.
Exore is currently earning 100% stakes in both the Bagoe and Liberty projects.
Under the all-share deal, Exore shareholders will receive one Perseus share for every 12.79 share of Exore they own - representing a 56.9% premium based on the 20-day volume-weighted average price of both companies.
At press time in Toronto, Perseus was trading at $1.08 per share within a 52-week trading range of 40 ? and $1.23.
The company has 1.2 billion common shares outstanding for a $1.29-billion market capitalization.