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ReGIonAL RoUnDUp AFRIcA

Perseus lands on Exore

erseus Mining Ltd has swooped on Exore announced a maiden resource of “If I was an Exore shareholder I would
PWest Africa’s newest prospect, agreeing 9.75mt @ 1.9 g/t for 600,000oz gold (at a be bursting to hold Perseus stock,” he said.
a deal to acquire Exore Resources Ltd just 0.5 g/t cut-off) for Bagoe in early May. That “We have an excellent growth profile, the
weeks after the junior announced a maiden came after just 18 months of exploration financial capacity to finance a continuation
resource for its Bagoe gold project in Cote and Quartermaine sees the acquisition as of that profile but also start sharing some
d’Ivoire. much more than buying delineated ounces. of that cash with shareholders through divi-
Perseus will pay $60 million in shares for “Additional mill feed is a pressing issue, dend streams. We have an excellent team,
Exore – subject to shareholder approval – but I wouldn’t underrate the opportunities both in the corporate office and each of our
which represents a 69% premium on the which arise from the broader area,” he said. operations and we have a strong licence to
explorer’s previous closing price and a 78% “The major asset of Exore is the 2,000sq operate in each country. Perseus has all
premium on its 20-day VWAP. km land package; it is very prospective the ingredients for a very strong gold min-
Exore’s board unanimously recommend- country.” ing company.”
ed the scheme-of-arrangement with the The deal may have come earlier than The takeover is the latest in a series of
deal expected to be completed by the end expected for Exore given its short history corporate deals on the West African gold
of September. but managing director Justin Tremain said stage. Tremain believes it speaks to an
Perseus launched the offer in late May, Apollo’s decision had put Bagoe in play. increased interest in the region and Cote
weeks after Exore’s JV partner at Bagoe, “That put the spotlight on the project and d’Ivoire in particular.
Apollo Consolidated Ltd, announced it had presented an opportunity for Perseus to act “It has been left behind a bit in terms of
accepted a bid for its 20% share from pri- sooner rather than later,” he said. exploration focus in the last 10-15 years but
vate equity group Ibaera Capital. Tremain and his fellow directors are that has turned around and there is signifi-
Exore had 30 days to enact its pre-emp- backing the Perseus bid, believing it to be cant interest from operators in West Africa
tive rights to Apollo’s 20%, a move which a good outcome for investors. and outside West Africa.”
will be undertaken with Perseus’ support. “It makes a lot of sense for shareholders,” Perseus is among the leaders of the Ivo-
For Perseus, the acquisition is timely giv- he told Paydirt TV. “Perseus is a growth rian gold sector with Sissingue producing
en the pressing need to find additional ore company on track to produce half a million 87,000oz gold in FY2019 and the 215,000
for its Sissingue mill, 50km north of Bagoe. ounces. It will see Bagoe fast-tracked to- ozpa Yaoure project set for first gold in De-
“We have an excellent operation at Siss- wards production and Exore shareholders cember.
ingue and a first-class team; the only nega- will not be subject to finance risk which is The company’s share price is up 130%
tive is it has a three-year mine life,” Perseus often an issue for single project companies in the last 12 months as it enjoys wide
managing director Jeff Quartermaine told when they get to the stage of development. margins on 270,000 ozpa of group produc-
Paydirt TV. “So, it provides us with the And, it comes at a substantial premium.” tion in the strong gold price environment.
opportunity, if we are successful in further Quartermaine said Exore shareholders Its market cap of $1.4 billion is the largest
work, to develop a standalone operation or would see full benefit from transferring their among ASX-listed mid-tier African miners
but still lower than peers with Australian
portfolios.
Despite this, Quartermaine is committed
to the jurisdictions the company operates
in.
“West Africa is a fine place to work,” he
said. “We understand how to operate with-
in those jurisdictions. We have established
a good track record of doing what we say
we will, building good relationships with
host communities and governments.
“We are performing very strongly and
the development at Yaoure is going very
strongly indeed. These achievements
come against the backdrop of the corona-
virus but we are generating a lot of cash
and moving along strongly.”
truck material through to Sissingue.” investment to Perseus.
– Dominic Piper
Perseus’ bid for Exore will see it gain control of 2,000sq km
of prospective ground in northern Cote d’Ivoire

BREAKING NEWS: As Paydirt went to print another ASX-listed West African junior was at the M&A table with Cardinal
Resources Ltd accepting a 39% premium offer from Chinese gold producer Shandong Gold Mining. Cardinal managing
director Archie Koimtsidis told Paydirt the company was happy to have the project validated by a $US15 billion gold
company. For more on the deal get your July edition of GMJ.

Page 58 JULY 2020 aUSTRaLIa’S PaYDIRT