Shareholders of International Musto Explorations (TSE) have tendered almost 33.4 million shares (or about 98% of those that are outstanding) in favor of a bid made by Rio Algom (TSE) and Australian-based North Ltd.
Rio and North, through RN Galaxy Resources, made a cash offer bid of $14.99 per share for all of Musto’s outstanding shares. With all conditions of the offer now being satisfied, Galaxy plans to take up and pay for all the offered Musto shares by no later than May 29. It also intends to acquire the remaining Musto shares, as outlined by the compulsory acquisitions provisions of the Canadian Business Corporations Act.
Interest in acquiring control of Musto was sparked earlier when gold producer Placer Dome (TSE) offered $12.50 for each outstanding Musto share. After receiving the Rio-North offer, Musto’s board of directors recommended its shareholders accept the higher cash offer.
The plum in Musto’s property portfolio is a 50% interest in the Bajo de la Alumbrera copper-gold porphyry project. The Argentine property is being developed with MIM Holdings of Australia at an estimated cost of US$750 million.
Reserves in all categories at Bajo de la Alumbrera stand at 752 million tonnes averaging 0.51% copper and 0.65 gram gold per tonne. Annual production is projected at 180,000 tonnes of copper and 640,000 oz. gold over a mine life of 19 years.
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