Randgold Makes Rival Offer With AngloGold For Moto Goldmines
16 July 2009 - 10:29PM
Dow Jones News
Randgold Resources Ltd. (GOLD) Thursday said it has made a rival
offer for Moto Goldmines Ltd. (MGL.T) in a deal that values the
gold exploration firm at about CAD546 million ($488 million).
The deal would give it and AngloGold Ashanti Ltd. (AU) access to
a key project in the Democratic Republic of Congo.
AngloGold, Africa's largest producer of the precious metal, has
agreed to part-fund the acquisition in exchange for an indirect 50%
stake in Moto, and separately said it will pay $244 million after
Randgold closes its deal.
Perth, Australia-based Moto in June agreed to a CAD513 million
all-share acquisition by Red Back Mining Inc. (RBI.T), another
Africa-focused mining firm with operations in Ghana and
Mauritania.
Randgold, which is incorporated in the Channel Islands and mines
in west Africa, said its offer represents a 7% premium to Moto's
share price as of Wednesday and an 11% premium to the price ahead
of the Red Back deal being announced. It said it also has the
support of Congo's government, which has a 30% interest in Moto's
key Moto Gold Project through state-owned Offices des Mines d'Or de
Kilo-Moto.
Randgold said it is offering the equivalent of CAD5 a share for
Moto, which would be paid with 0.07061 of a Randgold share for each
Moto share or a cash alternative. The company could issue as many
as 3.9 million shares, it said.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com