Placer extends Aurion offer

Placer Dome (PDG-T), now with more than 31% of AurionGold’s shares, has again extended its unconditional final bid.

Placer’s offer of 17.5 of its own shares for every 100 AurionGold shares plus A35 cash, set to expire August 16, is now good until August 30. Placer says the extension allows shareholders to receive AurionGold’s final dividend of A7 per share for shareholders of record on August 23.

Fund group Colonial First State, which holds 16% of AurionGold, and M&G Investment Management, which holds 6%, have both rejected the current offer.

Placer has also begun a feasibility study on the Pueblo Viejo gold deposit, 110 km north of Santo Domingo, Dominican Republic.

Placer initially has four years to reach a production decision, during which time it must spend US$10 million on exploration. The government retains a net smelter return and a net profit interest.

A scoping study pegs annual gold production at 400,000 oz. using conventional and bioleach processing. Pueblo Viejo has a resource of 544 million tonnes grading 2 grams gold and 11.7 grams silver per tonne.

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