Mako Gold’s Takeover by Aurum Resources Sets Stage for West African Gold Growth
Mako Gold Limited has agreed to a takeover by Aurum Resources, creating a stronger gold exploration entity in West Africa with over A$20 million in cash to accelerate development at key projects.
- Aurum Resources acquires 90.23% of Mako Gold shares, moving to compulsory acquisition
- Merger offers Mako shareholders a 112% premium based on 30-day VWAP
- Combined entity to focus on advancing Napié and Boundiali gold projects in Côte d'Ivoire
- High-grade gold results up to 170g/t Au at Mako’s Komboro Prospect
- Aurum provides interim funding facility to support Mako during takeover
A Strategic Merger in West African Gold Exploration
Mako Gold Limited (ASX:MKG) and Aurum Resources Limited (ASX:AUE) have formalized a merger agreement that will see Aurum acquire 100% of Mako’s shares and options through an off-market takeover bid. As of late January 2025, Aurum holds over 90% of Mako’s shares, enabling it to compulsorily acquire the remainder and consolidate ownership.
This merger is positioned to create a more robust exploration and development gold company focused on northern Côte d'Ivoire, combining Mako’s promising assets with Aurum’s financial strength and operational capabilities. The combined entity will command a cash balance exceeding A$20 million, providing a solid foundation for accelerated exploration and resource development.
Attractive Premium and Shareholder Value
The offer to Mako shareholders represents a significant premium, with Aurum offering one Aurum share for every 25.1 Mako shares, equating to an offer price of approximately $0.018 per Mako share. This reflects a 112% premium based on Mako’s 30-day volume weighted average price prior to the merger announcement, underscoring Aurum’s commitment to delivering value to Mako’s shareholders.
Post-merger, Mako shareholders will own around 20.5% of the combined company, with Aurum shareholders holding the majority stake. This ownership structure aims to balance continuity with the benefits of scale and enhanced market presence.
Exploration Highlights Bolster Merger Appeal
Mako’s flagship Napié Gold Project continues to deliver compelling exploration results, with recent rock chip samples from the Komboro Prospect returning exceptionally high-grade gold assays up to 170 grams per tonne. These findings, alongside previous drilling intercepts showing grades as high as 30.47 g/t Au, validate the prospect as a priority target for further drilling and resource expansion.
Meanwhile, Aurum is actively advancing its Boundiali Project with six company-owned drill rigs and has ordered two additional diamond rigs to deploy post-merger, signaling an aggressive approach to resource definition and growth.
Corporate and Financial Positioning
During the takeover period, Aurum has extended a $1.5 million interim loan facility to Mako, of which $500,000 has been drawn to fund ongoing operations. Despite the takeover activity, Mako maintained a cash balance of $0.64 million at the end of the quarter, with exploration expenditure of $447,000 focused on its Côte d'Ivoire projects.
The merger is expected to reduce the consolidated cost base and enhance operational efficiencies, leveraging Aurum’s experience and financial resources to unlock value across the combined portfolio.
Looking Ahead
With regulatory approvals progressing and Aurum’s compulsory acquisition rights triggered, the merger is poised to complete imminently. The combined entity will be well-positioned to accelerate exploration and development activities in a prolific West African gold region, potentially reshaping the landscape for mid-tier gold explorers in the area.
Bottom Line?
As Aurum consolidates control, the merged company’s next moves in exploration and resource development will be critical to validating this strategic acquisition.
Questions in the middle?
- How will Aurum integrate Mako’s exploration programs and what are the immediate drilling priorities?
- What are the implications of the merger for Mako’s existing shareholders and option holders?
- How might the combined entity’s enhanced cash position influence its project development timelines and capital allocation?
