Pasofino Gold Enters Into Exclusive Agreement For $75 Million Cash Acquisition Offer

Pasofino Gold Limited EFRGF, a Canadian-based mineral exploration company, has just announced that it has signed an exclusivity agreement with an independent potential buyer who has offered to acquire Pasofino for a cash sum of $75 million.

Given the current gold market and recent similar African mergers and acquisitions, Pasofino reports it evaluated purchase offers to maximize shareholder value. The offer grants the purchaser an exclusive period until Nov. 7, 2024, contingent upon the purchaser and its financing partners successfully completing due diligence and obtaining all necessary internal approvals.

Pasofino also provided updates on the strategic review process that it first announced in February 2023.

The Dugbe Gold Project encompasses almost 1,300 square miles in southern Liberia. Near the southwest corner of the Birimian Supergroup, it is home to some of the richest gold deposits in West Africa. The mine's reserves have been estimated by the company to exceed 3 million ounces of indicated gold resources graded at 1.37 grams per ton, suggesting about 0.6 million ounces of inferred resources.

When Pasofino originally announced the Strategic Review Process, Pasofino committed to updating stakeholders on key events that could have a material impact on the agreement.

In August, Pasofino announced that it intended to negotiate interim financing to fund further advancement of the Dugbe Gold Project. The August 26 announcement stated that the company had been engaged with multiple parties regarding the potential acquisition of the company.

Pasofino's decision was bolstered by the current level of gold prices, the net asset value of the Dugbe Project’s estimated reserves and the metrics of recent merger and acquisition activity for similar projects in the region.

On September 16, Pasofino then released additional information about these discussions. The  company revealed its exclusivity agreement with a potential buyer to acquire it in a cash transaction.

Pasofino also said that it expects to enter into a definitive agreement in the fourth quarter of 2024.

Any additional terms of these ongoing purchase and financing negotiations will be determined no earlier than one trading day following their announcement by Pasofino Gold. Should a transaction occur, the company reports that insiders of Pasofino have confirmed their intention to subscribe for any common shares not subscribed for by third parties.

Pasofino cautioned that there are no assurances or guarantees that a definitive agreement will be entered into with the purchaser regarding the offer.

More information about Pasofino Gold is available on the company's website.

Featured photo by István Mihály from Pixabay.

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