Mako Gold’s (ASX:MKG) independent directors are urging shareholders to accept Aurum Resources’ (ASX:AUE) takeover offer with the suitor now owning over 86% of the target’s shares.
In mid-October, Aurum handed Mako an off-market merger proposal, offering one Aurum share for every 25.1 Mako shares held, equating to an offer price of $0.018 per share.
The bid also includes an offer of one Aurum share for every 170 class A options and one Aurum share for every 248 class B options.
At the time the offer represented a 112% premium to the 30-day volume weighted average price of $0.00855 of Mako shares.
Aurum has declared the offer, which is now unconditional, its ‘best and final’ and will not increase it further.
Mako’s independent directors Peter Ledwidge and Michele Muscillo say remaining shareholders should accept the offer “without delay”.
“If the remaining Mako shareholders do not accept the offer and Aurum does not reach compulsory acquisition thresholds (which includes a 90% relevant interest in Mako) they will remain a minority shareholder in Mako with reduced influence in the running of the business,” Ledwidge and Muscillo says.
Although the share offer was extended previously from its original closing date of 4 December 2024 to 31 January 2025, Mako notes that there is no guarantee that the offer will be further extended.
The option offer closed on 4 December.
On completion of the merger, Mako shareholders will own 20.5% of the larger company while Aurum shareholders will own the remaining 79.5%.
Mako’s flagship asset is the Napié Gold Project in Côte d’Ivoire located in the West African Birimian Greenstone Belts that host over 70 plus-1-million-ounce gold deposits.
Aurum is also exploring in Côte d’Ivoire, with its main asset the Boundiali Gold Project, which sits within the same greenstone belt that hosts Resolute Mining’s (ASX:RSG) Syama gold operation.
The merged company will own two gold projects with combined resources of around 2.5 million ounces and have an estimated pro-forma market capitalisation of around $90 million based on Aurum’s closing share price of $0.47 on 11 October 2024.
Mako has been advised by HopgoodGanim Lawyers regarding the offer.
Write to Angela East at Mining.com.au
Images: Mako Gold
