Two deals that have been in limbo over the last few months appear to be coming to a conclusion.
The first involves Moto Goldmines (MGL-T) and its gold rich Moto gold project in the northeastern part of the Democratic Republic of the Congo.
The company was put into play back at the beginning of June when Red Back Mining (RBI-T) made a $513 million offer.
But on Aug. 5 Red Back said it was backing out, confirming what investors suspected: Its rival in the attempted takeover, Randgold Resources (RRS-L) and AngloGold Ashanti (AU-N, AGG-A), were simply too big and too well connected in the DRC to beat.
Red Back’s withdrawal all but assures Moto will go to Randgold for the $546 million offer tabled on July 27 — an offer that Moto’s management fully endorsed over the Red Back offer.
Red Back’s first mover status did net it $15.25 million however, which Moto will have to pay to the company as the agreed upon termination fee.
In Toronto on Aug. 5 Red Back shares were up 5% or 47¢ to $10.69 on 1.6 million shares traded while Moto’s shares were of 4% to finish at $4.81.
As for Forsys Metals (FSY-T), the uncertainty around whether its suitor, George Forrest International Afrique (GFI) would actually be able to come up with the funds necessary to follow through on its $579 million offer appears to be over.
GFI told Forsys that it has secured financing and will be able to close the deal that values Forsys shares at $7.00 a share by Aug. 17.
GFI is looking to acquire Forsys for the company’s Valencia uranium project in Namibia. The project, which sits just 35 km along strike from Rio Tinto’s (RTP-N, RIO-L) Rossing uranium mine, and has a mining licence already in place.
Forsys shares surged 36% to close at $6.46 when word of GFI’s financing was announced on Aug. 4.
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