PERTH (miningweekly.com) – ASX- and TSX-listed Teranga Gold has slightly increased its takeover offer for TSX-listed Oromin Explorations.
Teranga in June formally started its friendly takeover of Oromin Explorations, offering 0.582 of its own shares for every Oromin share held. The junior has now increased this offer to 0.60 of its own shares for every Oromin share held, bringing the total number of Teranga shares on issue to 71.2-million.
The varied offer would expire on August 6.
Through the takeover offer, Teranga would acquire Oromin’s 43.5% shareholding in the Oromin Joint Venture Group (OJVG) deposits, and intended to work with the other JV partners to develop the deposits.
The OJVG reserves were estimated to host some 1.44-million ounces of gold, and would provide Teranga with the ability to blend ores from multiple deposits, which would enhance the company’s cost profile.
It would further provide Teranga with the ability to leverage its Sabodala project’s existing mill, infrastructure and mobile equipment fleet through increased production from the company’s interest in the OJVG reserves, and anticipated toll-milling opportunities.
The OJVG licences are adjacent to the Sabodala gold mine, in Senegal.
“We expect that the combination of assets will result in an entity with increased production and improved financial metrics as a result of the addition of Oromin’s interest in the OJVG openpit reserves,” said Teranga executive chairperson Alan Hill.
“This is a transaction that makes good sense for all shareholders and, once complete, we look forward to working with the OJVG partners and the government of Senegal to develop the asset as soon as possible, leveraging off our existing mill and infrastructure.”