Ibaera makes a play for Azumah
PERTH (miningweekly.com) – ASX-listed Azumah Resources has become the target of a takeover offer from private equity funded exploration and project development company Ibaera Capital.
Ibaera on Wednesday launched a 2.8c-a-share unconditional all-cash offer for Azumah, which holds the Wa gold project in Ghana, which is jointly owned by Ibaera.
In its bidders statement, Ibaera noted that the offer price represented a 100% premium to Azumah’s closing share price on September 17, and an 84% premium to the one-month volume weighted average share price.
The all-cash offer also represented a 100% premium to Azumah’s capital raise in July this year, under which more than 196.4-million shares were issued at a price of 1.4c each.
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.
Ibaera on Wednesday pointed out that the prospects for the Wa gold project’s development had improved materially in the short time that Ibaera had been involved as a joint venture partner.
The suitor had spent $22.25-million on Wa to earn its initial stake in the Ghanian gold project, which is expected to produce more than 100 000 oz/y from the openpit operation, over a mine life of some 11 years.
Ibaera already holds a 17.7% interest in Azumah.
Azumah has urged shareholders not to take any action regarding the unsolicited offer, pointing out that the offer was 'highly opportunistic', given the recent strength in the gold price, the pending feasibility study on the Wa project, and the upside potential from the underground discovery at Bepkong identified earlier this year.
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