Lecture Notes: West African Gold Mining Developments
Introduction
- Focus on recent developments in West African gold mining.
- Liveliness in mergers and acquisitions (M&A).
MMTS Services
- Provision for exemption from expenditure conditions due to bankruptcy, liquidation, or insanity.
- MMTS can help companies apply for these exemptions.
Perseus and OrCorp
- Perseus has acquired a 19% stake in OrCorp.
- This acquisition follows SilverCorp's bid for OrCorp.
- OrCorp's Nyanzaga Gold Project in Tanzania includes 40 million tons in reserve for a 2.6 million-ounce project.
- Perseus’s stake can block the SilverCorp deal.
- Possible intentions for Perseus:
- Forming a joint venture with SilverCorp.
- Submitting their own bid post due diligence.
Tietto Minerals and ZIJIN Capital
- Tietto has received a takeover bid from ZIJIN Capital at 58 cents per share.
- Independent experts deem the offer undervalued (fair value 79-93 cents).
- Tietto’s directors recommend rejection of the offer.
- Reasons for rejection include undervaluation, timing, shareholder disapproval, regulatory uncertainty, and potential tax implications.
- Potential limitation: Difficulty in finding other bidders due to asset and jurisdiction risks.
West African Resources and Endeavour Mining
- West African Resources acquiring 70% of the Kiaka Gold Project from Endeavour Mining.
- The deal involves cash and shares in West African Resources.
AIS Resources
- AIS Resources raising $30 million at an 11-cent discount.
- Fundraising structured to maximize early cash influx.
- WH Soul Patts underwriting a significant portion.
- Use of proceeds stated as "general working capital".
Conclusion
- Discussion on the varying strategies in the gold mining sector amid current economic climates.
- Speculation on further corporate actions in West African mining.
Additional Information
- Excitement around upcoming interviews and potential awards (ACH Awards).
- Notable sponsorship acknowledgments (e.g., DSI Underground, Tera Capital).
Note: The information shared is of a general nature and should not be considered financial advice. Consult with financial advisors before making investment decisions.