Avesoro Resources Inc. (DI) (ASO)

Sector:

Mining

 98.50p
   
  • Change Today:
      0.000p
  • 52 Week High: 172.00p
  • 52 Week Low: 31.50p
  • Currency: UK Pounds
  • Shares Issued: 81.58m
  • Volume: 20,369
  • Market Cap: £80.35m
  • RiskGrade: 250

Avesoro Resources taking on two mines in Burkina Faso

By Josh White

Date: Tuesday 31 Oct 2017

LONDON (ShareCast) - (ShareCast News) - Avesoro Resources has entered into a conditional agreement to acquire the Youga Gold Mine and Balogo Gold Mine in Burkina Faso, it announced on Tuesday, through the acquisition of the entire issued share capital of MNG Gold Burkina, Cayman Burkina Mines, MNG Gold Exploration, AAA Exploration Burkina and Jersey Netiana Mining and their subsidiaries from Avesoro Jersey.
The AIM-traded firm confirmed Avesoro Jersey is a related party to itself, being its majority shareholder with a 73.5% holing, with total consideration for the transaction of $69.5m.

It confirmed it has conditionally raised approximately £15.2m through a placing of new common shares to new and existing sophisticated and accredited investors at a placing price of 1.9p per share.

Of the proceeds from the placing, $18.5m will be used to fund the cash component of the acquisition consideration, and the remainder will be used for general working capital purposes.

Up to a further $2.5m may be raised for working capital purposes by way of a broker option as determined by the brokers, which will remain open for exercise by the brokers until 1700 GMT on Tuesday.

Avesoro's board said the $69.5m acquisition consideration was to be funded through $51.0m of common shares issued to Avesoro Jersey as well as the $18.5m of cash raised via the placing.

It described the transaction as a "transformational acquisition" for the company, which would add two producing mines to its portfolio.

"I am delighted to announce that we have entered into an agreement with Avesoro Jersey to acquire the Youga Gold Mine and Balogo Gold Mine in Burkina Faso," said chief executive Serhan Umurhan.

"The Assets will provide Avesoro with geographic diversity within West Africa and are highly complementary to our existing New Liberty mine, significantly increasing Avesoro's gold production, in addition to adding high quality exploration upside that will provide for further future organic growth.

"In conjunction with the turnaround at New Liberty, this acquisition marks a significant next step in achieving our long-term plan to become a premier mid-tier African gold producer."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

ASO Market Data

Currency UK Pounds
Share Price 98.50p
Change Today 0.000p
% Change 0.00 %
52 Week High 172.00p
52 Week Low 31.50p
Volume 20,369
Shares Issued 81.58m
Market Cap £80.35m
RiskGrade 250

ASO Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
Market averageMarket averageMarket averageMarket averageMarket average
62.71% below the sector average62.71% below the sector average62.71% below the sector average62.71% below the sector average62.71% below the sector average
Price Trend
4.34% below the market average4.34% below the market average4.34% below the market average4.34% below the market average4.34% below the market average
16.13% above the sector average16.13% above the sector average16.13% above the sector average16.13% above the sector average16.13% above the sector average
Income Not Available
Growth
Market averageMarket averageMarket averageMarket averageMarket average
43.33% above the sector average43.33% above the sector average43.33% above the sector average43.33% above the sector average43.33% above the sector average

What The Brokers Say

Strong Buy 0
Buy 0
Neutral 2
Sell 0
Strong Sell 0
Total 2
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

ASO Dividends

No dividends found

Trades for 10-Dec-2019

Time Volume / Share Price
15:47 69 @ 97.75p
11:42 300 @ 97.60p
08:29 20,000 @ 98.00p

ASO Key Personnel

CEO Serhan Umurhan
CFO Geoff Eyre

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