HomeNewsAvesoro Resources grows geographical footprint through acquisition

Avesoro Resources grows geographical footprint through acquisition

The acquisition provides geographic diversity for the company.

“I am delighted to announce that we have entered into an agreement with Avesoro Jersey to acquire the Youga and Balogo gold mines in Burkina Faso,” says Avesoro Resources CEO, Serhan Umurhan.

“The assets will provide Avesoro Resources with geographic diversity within West Africa and are highly complementary to our existing New Liberty mine, significantly increasing Avesoro Resources’ 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,” adds Umurhan.

Avesoro Resources has conditionally raised £15.2 million through a placing of new shares in the company to new and existing sophisticated and accredited investors at a placing price of 1.9 pence per placing share.

Of the proceeds from the placing, US$18.5 million 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 $2.5 million may be raised for working capital purposes by way of a broker option.

Feature image credit: Wikimedia