Avesoro Resources to delist as top shareholder completes acquisition

The Youga gold mine in Burkina Faso. (Image courtesy of Avesoro Resources)

West Africa-focused gold miner Avesoro Resources (TSX, AIM:ASO) will stop trading in Toronto and London this week as its largest shareholder, UK-based Avesoro Jersey Limited (AJL),  has acquired all remaining shares it did not own in the Canadian company.

AJL had offered £1.00 for each Avesoro Resources share in an offer set to expire on Nov. 22, but which was extended to Dec. 3. The bidder already had 80-million common shares in the gold producer, equivalent to a 98% stake.

The acquisition by AJL follows a number of challenges Avesoro Resources faced, including having to temporarily shut its Youga mine in Burkina Faso

The delisting of Avesoro Resources’ shares in Toronto is expected to take place on Tuesday, while its London shares will cease to trade on Wednesday.

The deal follows a number of challenges Avesoro Resources faced in the past few months, including having to temporarily shut its Youga mine in Burkina Faso after an illegal miner was shot dead on site by a security guard.

The company also had to suspend work at its New Liberty mine this year due to heavy rainfall flooding the pit, which hindered gold shipments from the mine.

In early October, a pit wall collapse forced the company to halt production again at the Liberian mine.

As a result, Avesoro cut annual output guidance for both mines, which are now forecast to produce between 140,000 and 145,000 ounces this year, down from the 180,000-200,000 ounces estimated in September. That compares to 220,000 gold ounces the New Liberty and Youga churned out in 2018. Avesoro Jersey Limited is owned by Turkish businessman Murathan Gunal.

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