TORONTO (miningweekly.com) – LSE- and Nasdaq-listed Randgold Resources has scheduled follow-up talks this week with government officials in the Democratic Republic of Congo, to discuss Randgold's plans to buy Moto Goldmines.
Moto owns 70% of the Moto gold project, in the DRC, and a government-owned company, L'Office des Mines d'or de Kilo-Moto, holds the balance.
Last month, Moto agreed to support Randgold's offer for the company and break off an earlier deal with Red Back Mining.
Randgold indicated at the time that it had formal written support for the acquisition from the government of the DRC and CEO Mark Bristow said on Monday that the support had been “fundamental” to the company's decision to pursue the transaction.
“Our current talks are part of the transaction completion process and will help ensure that, post completion, we can move smoothly and swiftly towards a bankable feasibility study on the Moto gold project,” he said in a statement.
Randgold, which mines gold in Mali and is building a new operation in the Côte d'Ivoire, announced on July 16 that it would present a rival proposal to Moto, comprising either 0,07061 of a Randgold share or $4,47 for each Moto share.
Moto shareholders can elect to receive either Randgold shares, American depositary shares or cash, but the cash portion of the transaction will be capped at $244-million.
Separately, Randgold has also inked an agreement with larger rival AngloGold Ashanti, which, if the proposed acquisition is successful, will fund the cash portion of the transaction as partial payment for an indirect 50% interest in Moto.
The companies will cofund the development of the Moto project and Randgold will be the mine's operator.
On August 5, Moto agreed to enter into a business combination with Randgold, after determining that its offer was superior to Red Back's earlier offer of 0,45 of a common share of Red Back for each Moto share.
Moto agreed to pay a termination fee of C$15,25-million to Red Back.