Moto Goldmines Confirms Randgold Approach
17 July 2009 - 5:02PM
Dow Jones News
Moto Goldmines Limited (MGL.T), a gold exploration and
development company listed on the Toronto Stock Exchange and the
London Stock Exchange's Alternative Investment Market, said Friday
it has received an unsolicited offer from Randgold Resources
Limited (GOLD) to buy all shares of Moto by way of a proposed plan
of arrangement at a price equivalent to C$5 a share.
MAIN FACTS:
-Moto are considering the offer to determine whether it is a
superior offer to the plan of arrangement that has been agreed with
Red Back Mining Inc. announced June 1.
-Randgold Resources announced proposal to enter into an
arrangement agreement providing for Moto July 16.
-Under proposed Randgold transaction, Moto shareholders would
receive 0.07061 of an ordinary share of Randgold (or, where
applicable, 0.07061 of an American Depositary Share, or ADS, of
Randgold) per Moto share.
-In addition, Moto shareholders would be provided the option to
elect to receive (in lieu of Randgold shares or ADSs) cash of $4.47
per Moto share.
-Randgold and AngloGold Ashanti Limited (ANG.JO) have agreed to
cooperate in respect of the proposed Randgold transaction. In that
regard, AngloGold has agreed to fully fund the cash alternative
described above in partial payment for an indirect 50% interest in
Moto which it would acquire upon completion of the proposed
Randgold transaction.
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com