JOHANNESBURG (miningweekly.com) – TSX- and Aim-listed gold development company Moto Goldmines would start negotiations with Africa-focused Randgold Resources regarding a potential takeover offer.
Moto noted in a statement on Monday that its financial and legal advisers had determined that Randgold’s unsolicited takeover offer could potentially be superior to the terms of Moto’s agreement with Canada-based Red Back Mining.
On June 1, Moto had agreed to a potential takeover offer with Red Back, in terms of which each outstanding common share of Moto would be exchanged for 0,45 of a common share of Red Back.
The parties had expected the deal to be concluded by August.
However, on July 16, gold companies AngloGold Ashanti and Randgold Resources, had announced that it wanted to take over Moto in a joint-venture (JV) partnership.
AngloGold and Randgold would form a JV for the development and operation of the Moto project, in the Democratic Republic of Congo, which was 70% owned by Moto.
Moto said that if its negotiations with Randgold were to result in the settlement of the terms of a definitive agreement, which it considered to be a superior proposal to its current agreement with Red Back, it would inform the fellow Canadian gold-miner of this.
Red Back would then have five business days to amend the terms of its agreement.
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