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Vango makes offmarket bid for Dampier Gold

17th September 2018

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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ASX-listed Vango Mining on Monday announced an all-scrip offmarket takeover offer for fellow-listed Dampier Gold, valuing the explorer and developer at 5.6c a share.

The offer is a near 87% premium on Dampier’s share price on Friday and also 98% above the company’s one-month volume weighted average price of the shares.

Vango, which is developing the Plutonic Dome gold project in which Dampier is earning a 50% interest, said shareholders accepting the offer would benefit from the increased liquidity and scale of Vango, as well as the recent exploration success at Plutonic.

Shareholders holding 12.63% of Dampier Gold’s shares have agreed to accept the offer in pre-bid acceptance agreements, which the suitor sees as an endorsement of the merits of its offer.

Vango and Dampier have a shared history in the Plutonic Dome gold project, in Western Australia. Dampier in 2010 acquired the Plutonic Dome Gold Project (PDGP) from Barrick Gold, and three years later entered into a farm-in and joint venture agreement with Vango Mining, then Ord River, whereby it agreed to sell down its interest. The following year, a new board determined that Dampier was unable to secure funding for its residual share in the project and elected to sell its 40% stake to Vango for $8.2-million.

Following the sale, the companies in May last year agreed to a farm-in JV, whereby Dampier was granted the right to earn 50% of the K2 project M52/183 for the capped expenditure of up to $3-million.

In 2018, Dampier purchased the Ruby Plains gold project from private vendors.

Edited by Creamer Media Reporter

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