Canada's B2Gold makes a play for Oklo
PERTH (miningweekly.com) – TSX- and NYSE-listed B2Gold has made a play for ASX-listed Oklo Resources, offering A$0.1725 for each Oklo share held, valuing the company at A$90-million.
The board of Oklo has unanimously recommended the takeover offer, which consists of 0.0206 B2Gold shares per Oklo share and A$0.0525 cash per Oklo share.
The offer represented a 127% premium to Oklo’s last closing price and a 103% premium to its 30-day volume weighted average share price. The offer also implied an acquisition price of A$135/oz based off the 668 500 oz of resource held at Oklo’s Dandoko gold project, in Mali.
“The B2Gold proposal was welcomed by the Oklo directors and comes at an opportune time for Oklo shareholders to crystalise value and derisk their investment in the company,” Oklo MD Simon Taylor said.
“While the Oklo team continues to see significant potential in the Dandoko project and the region generally, Dandoko is at an inflection point and this transaction removes the risks associated with project development, future capital raisings and other risks faced by a junior gold explorer in a foreign jurisdiction.
“Considering B2Gold’s compelling offer along with the risks involved in Oklo pursuing a 'go it alone' strategy, the board has resolved that the opportunity to combine with a well-funded, substantial multi-asset gold producer represents a highly attractive outcome for Oklo shareholders. B2Gold has proven operating capabilities in Mali and the Oklo directors are proud to be handing the Dandoko project over to a new custodian with confidence.”
The transaction would deliver an immediate and significant premium to the current Oklo share price as well as certainty of value through a combination of cash consideration and highly liquid B2Gold shares, Oklo told shareholders.
The transaction also allowed for exposure to B2Gold, a low-cost, senior gold producer with an established and globally diversified asset base, highly experienced management team, strong balance sheet, enhanced trading liquidity and a dividend-paying company, said Oklo.
B2Gold, which is headquartered in Vancouver, has three operating gold mines in Mali, Namibia and the Philippines and exploration and development projects across Mali, Colombia, Finland and Uzbekistan.
The company produced 209 365 oz of gold in the first quarter, generating revenues of C$366-million from the sale of 195 100 oz of gold at an average price of C$1 874/oz.
The transaction is subject to an independent expert finding it to be in the best interest of Oklo shareholders, as well as Oklo shareholder and Court approvals, and approval from the Mali Minister of Mines for the transfer of mineral rights.
Oklo shareholders are expected to meet in August to vote on the transaction.
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