Australian Resolute Mining will buy Toro Gold for $ 274 million
Resolute Mining said Wednesday that it will buy Toro Gold Ltd, targeting West Africa, in a cash and equity deal totaling approximately $ 274 million to expand production amid consolidation in the gold sector.
West Australian gold mining company Resolute has announced that it will acquire privately-owned Toro for $ 130 million in cash and 142.5 million shares in Resolute.
The gold mining industry has seen an increase in acquisitions and mergers as mining companies seek to increase their potential and assets faster to take advantage of rising gold prices.
Gold prices are up nearly 12 percent this year, with most of the gains expected in June.
Toro Gold's flagship asset is the low-cost, highly profitable Mako Gold mine in Senegal.
Resolute said it would produce 400,000 ounces of gold in 2019 at $ 960 per ounce, based on its short-term forecast, including production from the Mako acquisition.
Resolute has received acceptance from 94 percent of Toro's shareholders, which gives it control of the company from August 2, and intends to compulsory purchase all remaining shares on September 13.