Aurum Resources (ASX:AUE) and Mako Gold (ASX:MKG) have announced a landmark deal to merge, positioning the combined entity as a key player in West Africa’s gold exploration sector. The two companies entered into a Bid Implementation Agreement (BIA) on October 16, 2024, with Aurum proposing to acquire 100% of Mako’s shares and options through an off-market takeover bid.
The merger aims to consolidate assets, including Mako’s flagship Napié Project and Aurum’s Boundiali Project in Côte d'Ivoire, creating a well-funded exploration group with A$20 million in cash reserves. The deal is structured to offer Mako shareholders 1 Aurum share for every 25.1 Mako shares, a significant 112% premium based on Mako’s 30-day volume-weighted average price.
Dr Caigen Wang, Managing Director of Aurum, expressed enthusiasm for the merger, noting, “The Aurum team is excited to apply our skills to the Napié Project, which we believe has the potential to quickly evolve into a multi-million-ounce project.” He also emphasized the cost efficiencies Aurum will bring, thanks to its owner-operated drilling model, expected to reduce operating expenses significantly.
Peter Ledwidge, Managing Director of Mako, echoed these sentiments, stating, “We have always believed our Napié Project has the potential to host multi-million ounces of gold. The merger with Aurum allows us to unlock this value, while also gaining exposure to Aurum’s rapidly advancing Boundiali Project.”
The boards of both companies unanimously support the merger, recommending that shareholders accept Aurum’s offer unless a superior proposal emerges. Mako’s directors, who collectively hold 1.55% of Mako’s shares, have already committed to the deal.
The newly combined entity will hold two key West African gold projects, with a combined market capitalization of approximately A$90 million. The merger will further enhance the group’s exploration capabilities with six company-owned drill rigs, and a maiden resource estimate for the Boundiali Project is expected by late 2024
