The Randgold share offer announcement follows its proposal to buy Moto Goldmines, and the declaration that its bid was “superior” to that of rival Moto suitor Red Back Mining.

“Randgold has at last bitten the bullet and started using its very highly rated paper to make acquisitions,” Evolution Securities mining analyst Charles Kernot noted in reference to the bid for Moto, which has a large gold resource in the high-risk north-east of the Democratic Republic of Congo (DRC).

In the quarter, attributable gold production of 121 685 oz was up 10% quarter-on-quarter; the Morila mine, in Mali, morphed into a stockpile-treatment operation; the new Tongon development, in Côte d’Ivoire, was on track for production of gold in the fourth quarter of 2010; a prefeasibility study is in sight at the Massawa prospect, in Senegal; the high-grade Gounkoto, in Mali, progressed to a scoping study on completion of initial-phase drilling; and Loulo, also in Mali, showed potential for an additional near-surface resource. Profit for the quarter rose to $18,9-million.

Should it enter into a definitive agreement to acquire Moto, some of the proceeds of the offer could be used to fund the development of Moto’s large gold project in the DRC.

On the closing of the proposed Randgold transaction, AngloGold Ashanti, which has twinned with Randgold on the Moto deal, said that it would acquire an indirect 50% interest in Moto for $244- million in cash, plus a 50% share in other transaction-related liabilities and expenses.

Nonexecutive chairperson Philippe Lietard said that Randgold was clearly on its way into the premier league of the gold-mining industry.

CEO Dr Mark Bristow said that it was time for Randgold to enter the DRC, following its vocal interest in Moto.

“The driver for us is that organic growth is the real creator of value. Merger and acquisition activity works when there is opportunity to create that value and when there is very significant strategic leverage in a transaction, and we think that Moto offers both,” Bristow said.

“People constantly say that Randgold is overvalued but, if you look at our growth pipeline, we are always unwinding that value as we deliver more organic growth potential,” Bristow said.

TSX- and Aim-listed Moto Gold- mines last week said that Randgold’s buy-out plan repre- sented a “superior” transaction to that of Red Back, which it gave until midnight on August 4 to sweeten its offer beyond Randgold’s $4,47 cash for each Moto share, or 0,07061 of a Randgold share, for each Moto share.

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