7th Nov 2013 10:41
LONDON (Alliance News) - Amara Mining PLC Thursday said it has entered into a legally binding share purchase agreement with Amlib Holdings PLC.
The Africa-based gold mining company, with operations in Burkina Faso, Ivory Coast and Sierra Leone said that as part of the deal, Amara will acquire USD10 million in cash, a drilling operation and three Liberian exploration licences in return for 51.8 million shares in Amara with an aggregate value of USD11.0 million.
The company said that cash from Amlib, which is a subsidiary of Amara's strategic investor RDV Corporation, will be used develop the company's operations at the Baomahun, Yaoure, Kalsaka and Sega projects in West Africa.
Amara also said that as part of the deal, it will acquire Amlib Drilling Services Liberia, a subsidiary of Amlib, which has the potential of reducing the cost of drilling across Amara's portfolio of assets.
Amara Mining shares were up 6.7% to 14.14 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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