PERTH (miningweekly.com) – Gold miner Gold Road Resource’s takeover offer for fellow listed DGO Gold is gaining traction, with Gold Road on Friday noting that the company now held a 20.35% interest in the takeover target.
Gold Road in April launched the A$308-million takeover offer for DGO, offering offering 2.16 of its own share for every DGO share held. The offer implied a price of A$3.55 for each DGO share held, representing a 20% premium over DGO’s last trading price, and a 28% premium over its ten-day volume weighted average price.
The offer has been backed by the DGO board in the absence of a superior proposal.
DGO owns a portfolio of strategic investments in ASX listed companies De Grey Mining, Dacian Gold, and Yandal Resources, as well as a portfolio of exploration tenements in the Pilbara, Yilgarn, Bryah and Stuart Shelf provinces.
Gold Road has previously told shareholders that the acquisition of DGO aligned with the company’s strategy to invest in high quality gold projects in tier one jurisdictions