TSX: ASO
AIM: ASO
TORONTO, Dec. 18, 2017 /CNW/ - Further to the announcement
on 31 October 2017, Avesoro Resources
Inc., ("Avesoro" or the "Company"), the TSX and AIM listed West
African gold producer, is pleased to announce the completion of its
acquisition of the Youga Gold Mine and Balogo Gold Mine from
Avesoro Jersey Limited (the "Acquisition"). The Company has also
concurrently completed the previously announced placing of new
common shares which has raised approximately £15.2 million
(approximately US$20.0 million).
This completion represents a transformational acquisition for
the Company adding two producing mines to Avesoro's portfolio, with
operations in both Liberia and
Burkina Faso.
Serhan Umurhan, Chief Executive Officer of Avesoro,
commented:
"I am delighted to announce the completion of the acquisition
of Youga and Balogo Gold Mines from Avesoro Jersey Limited. Youga
and Balogo will strengthen and diversify our portfolio within
West Africa and will be highly
complementary to our existing New Liberty Mine.
This has been a significant year for the Company and one of
transition. New Liberty has been stabilised and now stands to
produce between 70,000 - 80,000 ounces this year, alongside the
110,000 ounces to be produced during 2017 at Youga and Balogo, with
further production growth expected next year. A major factor
contributing to the turnaround at New Liberty has been the
in-sourcing of multiple business functions resulting in substantial
long-term cost savings and improvements in productivity which have
resulted in positive EBITDA performance each quarter this
year.
With the completion of the acquisition and resulting growth
in our portfolio, the Company will end the year having taken a
significant step forward in achieving its stated plan to become a
premier mid-tier African gold producer."
Following the completion of the Acquisition, the issued share
capital of the Company comprises of 8,155,700,823 shares. As a
result of the Acquisition, Avesoro Jersey Limited increased its
shareholding in the Company by 2,033,492,822 shares to
5,945,715,251 shares representing approximately 72.9% of the
Company's issued share capital. As a result, Mr Serhan Umurhan, Chief Executive Officer of the
Company's indirect beneficial interest in the Company decreased to
approximately 2.19% of the Company's issued share capital.
The information below, set out in accordance with the
requirements of the EU Market Abuse Regulation, provides further
detail on the PDMR dealing.
NOTIFICATION AND PUBLIC DISCLOSURE OF
TRANSACTIONS BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITIES AND
PERSONS CLOSELY ASSOCIATED WITH THEM
1
|
Details of the
person discharging managerial responsibilities/person closely
associated
|
a)
|
Name
|
Serhan
Umurhan
|
2
|
Reason for the
notification
|
a)
|
Position/status
|
Director and Chief
Executive Officer
|
b)
|
Initial
notification/
Amendment
|
Initial
notification
|
3
|
Details of the
issuer, emission allowance market participant, auction
platform, auctioneer or auction monitor
|
a)
|
Name
|
Avesoro Resources
Inc.
|
b)
|
LEI
|
213800EXV9AU2DOCYC52
|
4
|
Details of the
transaction(s): section to be repeated for (i) each type of
instrument;
(ii) each type of transaction; (iii) each date; and (iv) each place
where transactions
have been conducted
|
a)
|
Description of
the
financial instrument,
type of instrument
Identification
code
|
Common shares of no
par value ("Shares")
ISIN for Avesoro
Resources Inc. common shares:
CA0515471070
|
b)
|
Nature of the
transaction
|
Indirect beneficial
interest in the Shares acquired pursuant to
vendor consideration
|
c)
|
Price(s) and
volume(s)
|
Price(s)
|
Volume(s)
|
1.9p
|
61,004,785
|
d)
|
Aggregated
information
- Aggregated
volume
- Price
|
61,004,785
£1,159,090.915
|
e)
|
Date of the
transaction
|
18 December
2017
|
f)
|
Place of the
transaction
|
Off market
|
About Avesoro Resources Inc.
Avesoro Resources is a West
Africa focused gold producer and development company that
operates three gold mines across West
Africa and is listed on the Toronto Stock Exchange ("TSX")
and the AIM market operated by the London Stock Exchange ("AIM").
The Company's assets include the New Liberty Gold Mine in
Liberia (the "New Liberty Gold
Mine" or "New Liberty") and the Youga and Balogo Gold mines in
Burkina Faso ("Youga" and
"Balogo").
New Liberty has an estimated proven and probable mineral reserve
of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an
estimated measured and indicated mineral resource of 9.6Mt with
985,000 ounces of gold grading 3.2g/t and an estimated inferred
mineral resource of 6.4Mt with 620,000 ounces of gold grading
3.0g/t. The foregoing Mineral Reserve and Mineral Resource
estimates and additional information in connection therewith is set
out in an NI 43-101 compliant Technical Report dated 1 November 2017 and entitled "New Liberty Gold
Mine, Bea Mountain Mining Licence Southern Block, Liberia, West
Africa" and is available on SEDAR at www.sedar.com.
Youga and Balogo have a combined estimated proven and probable
mineral reserve of 9.3Mt with 513,000 ounces of gold grading 1.7g/t
and a combined estimated indicated mineral resource of 16.05Mt with
801,600 ounces of gold grading 1.55g/t and a combined inferred
mineral resource of 13Mt with 655,000 ounces of gold grading
1.57g/t. The foregoing Mineral Reserve and Mineral Resource
estimates and additional information in connection therewith is set
out in two NI 43-101 compliant Technical Reports, dated
16 June 2017 entitled "Mineral
Resource and Mineral Reserve Update for the Balogo Project" and
dated 19 June 2017 and entitled
"Mineral Resource and Mineral Reserve Update for the Youga and
Ouaré Projects" and are available on SEDAR at www.sedar.com.
For more information, please visit www.avesoro.com
Qualified Persons
The Company's Qualified Person is Mark
J. Pryor, who holds a BSc (Hons) in Geology & Mineralogy
from Aberdeen University, United Kingdom and is a Fellow of the
Geological Society of London, a
Fellow of the Society of Economic Geologists and a registered
Professional Natural Scientist (Pr.Sci.Nat) of the South African
Council for Natural Scientific Professions. Mark Pryor is an independent technical
consultant with over 25 years of global experience in exploration,
mining and mine development and is a "Qualified Person" as defined
in National Instrument 43 -101 "Standards of Disclosure for Mineral
Projects" of the Canadian Securities Administrators and has
reviewed and approved the scientific and technical disclosures
contained in this announcement.
SOURCE Avesoro Resources Inc.