Resolute recently made a takeover offer for Toro Gold Ltd. for US$274 million. This includes US$130 million in cash and 142.5 million Resolute shares. Resolute would then own Toro Gold’s flagship asset, the Mako gold mine (Mako) located in Senegal. In 2018, Mako produced 156,926 ounces (oz) of gold.
Resolute said Mako will expand its production base, strengthen operational cashflow, increase revenues to which shareholder dividends are linked, and provide a strong platform for further growth.
Resolute’s existing portfolio includes the Syama gold mine in Mali, Bibiani gold mine in Ghana (Bibiani), and the Ravenswood gold mine in Australia (Ravenswood).
Resolute revised its 2019 production and cost guidance to 400,000 oz of gold, which includes production from Mako from acquisition.
Once the transaction is complete, Toro Gold shareholders will own 15.8% of Resolute.
Resolute’s largest shareholder, ICM Ltd., is supportive of the transaction, according to Resolute. Almost all of the Toro Gold shareholders, 94%, have signed commitments to accept the takeover offer and all required regulatory approvals have been secured.