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Highlights
- Gold Road today announced to acquire the remaining shares in DGO Gold Limited.
- Following the announcement, Gold Road shares traded in green today.
Gold Road Resources Limited (ASX:GOR), a gold mining and other minerals explorer , today (June 24) said it will acquire the remaining shares in DGO Gold Limited (ASX:DGO).
Gold Road released a statement confirming that the company has a 95.14% interest in DGO.
On the back of the news, Gold Road shares traded 1.69% higher at AU$1.20 each on ASX today at 2.30 PM AEST, while DGO shares were trading flat at AU$2.93 per share at 2.41 PM AEST.
More about the DGO deal
In a prior all-scrip offering, the company gave owners 2.25 GOR shares for every DGO share they owned.
Gold Road will now be required to acquire the remaining shares under the Corporations Act 2021 after successfully obtaining 95.14% of the DGO shares.
DGO shareholders will still have the opportunity to accept the offer, in which case they would receive their compensation sooner.
Also Read: Gold Road (ASX:GOR) shares gain on improved takeover bid for DGO
If the offer is not accepted, the same amount of money will be paid, but processing may take up to six weeks.
The deal will expire at 7 PM AEST on 30 June 2022 and won't be renewed.
As per ASX Listing Rule 17.4, trading in DGO shares on ASX is expected to be discontinued on 1 July 2022, which means that DGO shareholders might not be able to sell their DGO shares on the open market after that date.
Source: © Pcheruvi | Megapixl.com
Gold Road's March quarter update
According to Gold Road, the Gruyere JV produced 71,135 ounces of gold (on a 100% basis) for the quarter ending in March 2022 as compared to 67,813 ounces in the quarter ending in December. As a result, the production meets Gold Road's objectives.
The JV then processed a total of 2.1 Mt with a head grade of 1.17 g/t Au and a 91% gold recovery. Additionally, Gold Roads successfully finished the two planned plant shutdowns for SAG and ball mills relining throughout the quarter.
During the specified time, Gold Road also announced attributable ore reserves of 54.6 million tonnes at 1.27 g/t Au for 2.23 million ounces and total attributable mineral resources of 102.2 million tonnes at 1.43 g/t Au for 4.71 million ounces.
The Gruyere JV is a 50:50 joint venture between Gruyere Mining Company Pty Ltd. The Gruyere Gold Mine is managed and run by Gruyere Mining, an organisation that is a part of the Gold Fields Ltd company.
Also Read: NCM, PRU, SLR, GOR: Why were these ASX gold stocks in news today?
