Resolute Mining (ASX:RSG) has acquired approximately 94 per cent of Toro Gold (Toro Gold) ordinary shares (on an undiluted basis), which, along with the appointment of Resolute nominees to the Toro Gold board of directors to replace existing directors, gives Resolute immediate control of Toro Gold.
Under the deal Resolute will pay US$274 million Toro Gold for (US$130 million cash and 142.5 million Resolute shares).
Toro is a private company that holds a 90 per cent interest in the Mako Gold Mine in Senegal. Toro has provided guidance that the Mako Gold Mine will produce 157koz in 2019.
Resolute says the Mako Gold Mine is a high quality, strongly cashflow generative producing asset which complements our existing portfolio of large-scale, long-life mines.
Shares in Resolute Mining (ASX:RSG) closed 10.71 per cent higher at $1.86 on Friday