Oklo Resources Ltd (ASX:OKU) has signed a binding scheme implementation deed (SID) under which B2Gold Corp will – subject to conditions – acquire all fully paid ordinary shares in Oklo via a board-recommended scheme of arrangement.
Oklo shareholders will receive consideration with an implied value of A$0.1725 per held share, consisting of 0.0206 B2Gold shares and A$0.0525 cash consideration per Oklo share.
This implied value indicates an approximate fully diluted equity value of A$90 million, representing a 127% premium on Oklo’s last closing price and a 103% premium on volume-weighted average price (VWAP) over the 30 ASX trading days prior to the announcement.
In addition, this price represents a premium on any price Oklo shares have traded at on the ASX in the past 12 months, and an implied A$135 per ounce of gold based on Oklo’s 668,500 ounce resource.
Transaction removes project development risks
“The B2Gold proposal was welcomed by the Oklo directors and comes at an opportune time for Oklo shareholders to crystalise value and de-risk their investment in the company," Oklo Resources managing director Simon Taylor said.
“While the Oklo team continues to see significant potential in the Dandoko Project and the region generally, Dandoko is at an inflection point and this transaction removes the risks associated with project development, future capital raisings and other risks faced by a junior gold explorer in a foreign jurisdiction.
“Considering B2Gold’s compelling offer along with the risks involved in Oklo pursuing a 'go it alone' strategy, the board has resolved that the opportunity to combine with a well-funded, substantial multi-asset gold producer represents a highly attractive outcome for Oklo shareholders.
“B2Gold has proven operating capabilities in Mali and the Oklo directors are proud to be handing the Dandoko Project over to a new custodian with confidence.”
The Oklo board has expressed its opinion that the transaction is mutually beneficial based on the fact that B2Gold will gain optionality over the Dandoko Project, while Oklo shareholders will receive value and liquidity for their shares and the opportunity to share in the potential future upside from an investment in B2Gold.