JOHANNESBURG (miningweekly.com) – Aim-listed gold mining company Avocet Mining has formally launched a share-for-share offer for Africa-focused gold-miner Wega Mining ASA.

Avocet Mining has offered all Wega Mining shareholders 0,23 ordinary shares in Avocet for each Wega Mining share. This represented a value of 1,71 krone for each Wega share, based on the closing price of Avocet Mining’s shares on the Aim on May 15, which amounted to £0,75 a share, and measured at an exchange rate of 9,901.

This valued the Wega Mining shares at about $86,5-million, excluding the shares currently held by Avocet Mining.

The offer corresponded to a 16,2% premium to the Wega Mining closing price on the Oslo Axess, on May 15, the last practicable date prior to the offering.

“We are delighted to launch the offer process and, in anticipation of the offer's success, are excited to be working with the Wega Mining team at the Inata project,” said Avocet Mining CEO Jonathan Henry.

The Inata project is located in Burkina Faso.

The Avocet Mining offer was subject to certain conditions, which included a minimum acceptance condition of that number of Wega Mining shares, which, together with any Wega Mining shares directly or indirectly owned by Avocet Mining at closing, represented more than 90% of Wega Mining's then issued share capital.

Avocet Mining now own nearly 16% of Wega Mining directly.

Meanwhile, Avocet Mining reported that it had received irrevocable undertakings from certain Wega Mining shareholders representing 237,5-million Wega shares to accept the offer, which were not capable of revocation if a competing bid for Wega Mining emerged.

“Sixty-one percent of current Wega Mining shareholders have irrevocably committed to accept the offer and to participate in the future of a company, which will have significant profitable production and resources, as well as balance sheet strength," Henry said

These irrevocable undertakings, when taken together with the Wega Mining shares now held by Avocet Mining following the equity subscription announced during April this year, represented in aggregate about 76,6% of Wega Mining's issued share capital.

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