PERTH (miningweekly.com) – The directors of takeover target Azumah Resources has supported an increased offer from suitor Ibaera Capital, which has increased its offer from 2.8c a share to 3.3c a share.

Azumah on Monday said that the increased offer represented a 136% premium to the company’s closing price prior to the announcement of the offer, and an 18% premium to the initial offer.

“The directors of Azumah unanimously recommend shareholders accept the increased offer in the absence of any superior proposal,” Azumah said in a statement, adding that each of the company’s directors intended to accept the increased offer in relation to their own shares.

“The increased offer was a good result for shareholders, given the significant premium offered to the Azumah share price immediately prior to the offer being announced, as well as being a premium to the implied value per Azumah share represented by the recent minority 4% interest earn-in transaction entered into with Ibaera in respect to the Wa gold project,” said Azumah chairperson Michael Atkins.

Ibaera earlier this month struck an agreement with Azumah to increase its shareholding in the Wa project from its current 42.5% stake to 46.5% by sole funding the remaining $2.25-million required to complete a feasibility study for the gold project.

Atkins noted that the increased offer was a fair recognition of both Azumah’s and Ibaera’s respective control over the development of the Wa gold project through the exiting joint venture, particularly where key decisions over the future progress required the unanimous agreement of both parties.

“We recognize that some shareholders may have preferred to realise the ultimate vision of successfully bringing the Wa gold project into production, but after balancing the increased price now on offer for Azumah shares against the inherent future risks of successfully completing financing, construction and entering in to steady state production, as a board we unanimously believe that accepting the increased offer is the best path forward for shareholders.”