Randgold Resources Limited (LSE: RRS) announced it has completed its takeover of Moto Goldmines Ltd (TSX: MGL, AIM: MOE). Randgold and AngloGold Ashanti Ltd, through their indirectly jointly owned subsidiary 0858065 BC Ltd, now control Moto, having acquired all the outstanding Moto common shares.
Randgold Resources now plans to move swiftly towards a bankable feasibility study on the Moto gold project following the completion of the business combination.
"The Moto deal essentially represents the acquisition of an opportunity to convert a very big if technically challenging gold deposit into a profitable mine, This is in line with our growth strategy of creating value by developing discoveries rather than paying a premium for established operations.”
The Moto Gold Project is located in the Moto Gold Camp in the north east of the Democratic Republic of Congo, 570km north east of the city of Kisangani and 150km west of the Ugandan border town of Arua. In March 2009 the project's optimised feasibility study and technical review included a revised Probable Mineral Reserve for a value driven open pit and high grade underground mining operation of 42.3Million tonnes at 4.0g/t Au for 5.5 million ounces gold.
Earlier this summer Randgold launched the rival bid for Moto Goldmines, following Moto’s earlier proposed merger with Red Back Mining. Moto’s management duly cancelled its proceedings in respect of the Red Back merger in August.
Under the Randgold offer Moto shareholders will receive 0.07061 of an ordinary share of Randgold or, where applicable, 0.07061 of an ADS of Randgold per Moto share, or cash of US$4.47 per Moto share - C$5.00 based on the noon exchange rate published by the Bank of Canada on July 15 2009.
It is expected that the Moto common shares will be delisted from the Toronto Stock Exchange and the Alternative Market of the London Stock Exchange (AIM) two or three business days following the effective date.