20th Jul 2009 16:20
"Not for dissemination in the United States or through any US newswire service"
NEWS RELEASE
FOR IMMEDIATE RELEASE TSX Code - MGL
JULY 20, 2009 AIM Code - MOE
MOTO BOARD CONSIDERS POTENTIALLY SUPERIOR OFFER FROM RANDGOLD RESOURCES
PERTH, WESTERN AUSTRALIA - Moto Goldmines Limited ("Moto") confirms that its Board of Directors (the "Moto Board"), having received advice from its financial and legal advisors, has determined that the unsolicited offer received on July 16, 2009 from Randgold Resources Limited ("Randgold") for the acquisition of all of the shares of Moto by way of a proposed plan of arrangement is potentially superior to the terms of the current agreement between Moto and Red Back Mining Inc. ("Red Back") announced June 1, 2009.
Moto will now commence negotiations with Randgold concerning its offer. Should such negotiations result in Moto and Randgold settling the terms of a definitive agreement that the Moto Board considers constitutes a superior proposal to the current agreement with Red Back, Moto will so advise Red Back. Under the terms of its current agreement with Moto, Red Back would then have a period of five business days to offer to amend the terms of that agreement. In accordance with the terms of the current Red Back agreement, if Red Back then offers to amend the terms of its proposal such that the Moto Board determines that the Randgold Proposal is no longer a superior proposal, Moto will be required to enter into an amendment to the existing Red Back agreement and to implement the amended Red Back proposal.
Moto will advise by news release in due course the results of its negotiations with Randgold and, in particular, if it settles the terms of a definitive agreement with Randgold that triggers Red Back's right to amend its current offer.
For further information in respect of Moto's activities, please contact:
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Andrew Dinning |
Mark Arnesen |
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President and Chief Operating Officer |
Financial Director and Chief Financial Officer |
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Tel: +61 8 9273 4222 |
Tel: +61 8 9273 4222 |
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email: [email protected] |
email: [email protected] |
Moto Goldmines Limited website: www.motogoldmines.com
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Nominated advisor for the purposes of AIM: |
RFC Corporate Finance Ltd Steve Allen Tel: +61 8 9480 2508 email: [email protected] |
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AIM Broker |
GMP Securities Europe LLP James Cassley Tel: +44 207 647 2803 email: [email protected] |
Caution Regarding Forward-Looking Statements: Statements in this news release regarding the negotiation of a definitive agreement with Randgold and amendments to the current agreement between Moto and Red Back are forward-looking. There can be no assurance that Moto and Randgold will reach a definitive agreement or, if an agreement is reached, that Red Back will offer to amend the terms of its agreement.
Related Shares:
Randgold Resources