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Highlights
- Aurum Resources and Mako Gold set for a merger to boost gold development.
- The merger will focus on advancing gold projects in Côte d'Ivoire.
- Mako shareholders to hold a 20.5% stake in the combined entity.
Aurum Resources Ltd and Mako Gold Ltd have entered into an agreement to merge, setting the stage for significant progress in gold exploration and development in West Africa. This strategic move by the ASX gold stock will focus on advancing two key gold projects: the Napié and Boundiali projects, located in northern Côte d’Ivoire.
Under this agreement, Aurum will acquire all of Mako Gold’s (ASX:MKG) shares and unlisted options through an off-market takeover bid. The proposed offer includes 1 Aurum (ASX:AUE) share for every 25.1 Mako shares. For the unlisted options, Aurum will offer 1 share for every 170 Class A Options and 1 share for every 248 Class B Options. The offer values each Mako share at $0.018, a 112% premium based on Mako’s 30-day volume-weighted average price of A$0.00855.
The combined entity will see Mako shareholders owning a 20.5% stake, while Aurum shareholders will hold the remaining 79.5%. Both companies bring complementary strengths to the table, with a robust cash balance of $20 million expected to provide a solid financial foundation for their combined operations. Aurum’s current drilling operations and planned equipment additions further highlight the activity expected to accelerate following the completion of the merger.
Aurum's managing director, Dr. Caigen Wang, expressed optimism about the merger, noting the potential to rapidly advance the Napié project. Aurum has already deployed six of its own drilling rigs at the Boundiali project and plans to add two diamond drill rigs following the merger's finalization. Dr. Wang highlighted the strategic fit between the two companies, emphasizing how their respective technical teams and exploration expertise will merge to drive long-term value.
The focus on cost efficiencies is a key advantage, with Aurum's drilling program expected to operate at lower costs compared to typical contract rates. Aurum aims to drive growth not only at Napié but also at its Boundiali project, where it plans to deliver a maiden resource later in the year.
This merger signals the combined entity’s ambition to emerge as a significant player in West African gold development. With two projects in close proximity and strong financial and technical backing, the future holds promising potential for Aurum and Mako as they set their sights on long-term success in Côte d’Ivoire.
