The board of Canadian gold miner Avesoro Resources (ASO:AIM) has recommended a takeover offer at £1 per share from controlling shareholder Avesoro Jersey to acquire the remaining stake in the company that it doesn’t already own.

For minority shareholders, this means they now need to vote whether or not to accept the offer.

Shareholders who do not take any action will not receive the cash for their shares. Avesoro shares are currently trading at 94p.

READ MORE ABOUT AVESORO RESOURCES HERE

Avesoro Resources will send shareholders a copy of the directors' circular in respect of the offer, and shareholders will then need to fill in a form to decide whether or not to accept the bid.

The offer will be open until 5pm Toronto time (9pm GMT) on 22 November, unless withdrawn or extended in accordance with the terms of the offer.

Tabled back on 30 August before becoming formal on 17 October, the offer from Avesoro Jersey – which currently has a 72.9% stake in the company – was a 14% premium on Avesoro Resources’ closing share price of 88.5p the previous day.

SHARES DOWN AFTER OPERATIONAL ISSUES

The miner has seen its share price fall markedly this year, down from highs of around 170p, as it continues to struggle with operational issues.

A security breach at its Youga mine in Burkina Faso led to damage sustained to its heavy mining equipment, while a pit wall and ramp failure occurred recently at its New Liberty mine in Liberia, meaning the company has put its production guidance under review.

The firm looked to have turned a corner last year when it reported strong production numbers and seemingly had costs under control, with its share price reaching over 280p last May.

However following a further series of operational problems, the miner cut its production guidance and again has had to ask for more money from its banks, with its share price responding accordingly.

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Issue Date: 22 Oct 2019