Avesoro Resources completes acquisition of West African gold mines

JOHANNESBURG (miningweekly.com) – Dual-listed West African gold producer Avesoro Resources has completed its acquisition of the Youga gold mine and Balogo gold mine from Avesoro Jersey, while a concurrent placing of new common shares raised £15.2-million

This completion represents a transformational acquisition for the company adding two producing mines to Avesoro’s portfolio, with operations in both Liberia and Burkina Faso.

"[The mines] will strengthen and diversify our portfolio within West Africa and will be highly complementary to our existing New Liberty mine,” CEO Serhan Umurhan said, adding that this marked a significant year for the company.

New Liberty has been stabilised and now stands to produce between 70 000 oz and 80 000 oz this year, alongside the 110 000 oz to be produced during 2017 at Youga and Balogo, with further production growth expected next year.

A major factor contributing to the turnaround at New Liberty has been the insourcing of multiple business functions resulting in substantial long-term cost savings and improvements in productivity which have resulted in positive earnings before interest, taxes, depreciation and amortisation performance each quarter this year.

“With the completion of the acquisition and resulting growth in our portfolio, the company will end the year having taken a significant step forward in achieving its stated plan to become a premier mid-tier African gold producer.”

Following the completion of the acquisition, the issued share capital of the company comprises of 8.155-billion shares. As a result of the acquisition, Avesoro Jersey increased its shareholding in the company by 2-billion shares to 5-billion shares representing 72.9% of the company’s issued share capital.