(Ecofin Agency) - exploration in Côte d'Ivoire. Aurum is set to release its first resource estimate for the Boundiali project by the end of 2024, while Mako has a project with 868,000 ounces of gold.

The two companies have agreed to merge in a deal worth A$90 million (about US$60 million). This merger will result in a new entity with A$20 million (US$13 million) in cash for gold exploration in northern Côte d'Ivoire.

Aurum is currently leading the Boundiali project, which includes four exploration permits. The firm plans to issue a resource estimate by the end of this year.  As for Mako, it holds the Napié gold project, more advanced than Boundiali. The Napié project is estimated to hold 868,000 ounces of inferred mineral resources as of 2022.

Under the merger deal, Aurum will acquire all shares of Mako Gold, and two classes of unlisted options through an off-market takeover bid. Both companies have already signed a Bid Implementation Agreement for this merger.

Under the deal’s terms, every Mako shareholder will receive one Aurum share for every 25.1 Mako shares they own. With Aurum's share priced at AUD 0.45, this agreement offers a premium of 91% to 112% over recent Mako share prices. The merger proposal will be presented to shareholders soon. After the merger, Aurum shareholders will hold about 79.5%, while Mako shareholders will own around 20.5% of the new company.

Mako CEO Peter Ledwidge stated, “We have always believed our Napié Project has potential to host multi-million ounces of gold, and pleasingly, due to relative sizes of Mako and Aurum, upon close of the Proposed Merger, Mako securityholders will remain a meaningful part of the expanded group, and therefore will share in the continued upside to the growth in Napié, as well as gain exposure to the rapidly evolving Boundiali Project where Aurum expects to deliver its maiden resource in late 2024.”

The merger awaits regulatory and shareholder approvals from both companies and follows several notable transactions in the mining sector worldwide. For example, Canada's Fortuna Mining agreed to acquire Chesser Resources and control the Diamba Sud project in Senegal in 2023. Additionally, Morocco's Managem purchased Canadian Iamgold's gold assets in West Africa for about $282 million that same year. In September 2024, AngloGold Ashanti signed an agreement to acquire Centamin and its Sukari gold mine in Egypt.

As gold production rises in Côte d'Ivoire, this merger could speed up the development of both companies' gold projects and lead to new mines being built. Côte d'Ivoire produced 51 tonnes of gold in 2023 and is expected to increase that to 55 tonnes in 2024.

Emiliano Tossou