Photo by: Bloomberg
PERTH (miningweekly.com) – Centamin West Africa Holdings – a wholly owned subsidiary of TSX- and LSE-listed Centamin – has extended its takeover offer for ASX-listed Ampella Mining, but has told the company’s shareholders that it would not increase its offer price.
In December, Centamin launched a one-for-five share offer for Ampella, valuing the African explorer at around A$40.9-million. The offer price represented a 113% premium to Ampella’s closing price at December 6, and a 77% premium to the 20-day volume-weighted average price.
The takeover offer has been extended to close on February 27, and Centamin has encouraged Ampella shareholders to accept the offer. To date, the company has acquired a 35.29% shareholding in Ampella.
Once Centamin acquires a 90% shareholding in Ampella, the company would launch a compulsory acquisition of the remaining shares.
Centamin has previously told Ampella shareholders that the deal would result in a significant gold production company, with Centamin's significant cash resources and expected future cash flows from its Sukari gold mine, in Egypt, providing “a high level” of funding certainty in the current challenging market environment.
Centamin's long-life Sukari gold mine produced 356 943 oz in 2013, and output is expected to increase to between 450 000 oz/y and 500 000 oz/y from 2015.
Ampella’s Batie West gold project, in Burkina Faso, which hosts the 3.25-million-ounce Konkera Resource, and 1 200 km2 of exploration ground across the border from Batie West, in Côte d'Ivoire, would also boost Centamin’s development portfolio.