StockMarketWire.com - Avesoro Resources said its controlling shareholder Avesoro Jersey made an offer to acquire the remaining stake in the company at a price of £1 a share that it did not already own. The company also warned that it would materially reduce its full-year gold production guidance.

Avesoro Jersey currently held approximately a 72.9% stake in the company, and its offer was supported by holders who had an additional 12.9% stake in the company.

To assess whether it was in the best interests of the company to support the acquisition proposal, the company had formed a special committee to conduct a detailed review and analysis of the acquisition proposal and to identify and consider alternatives that may be available to the company.

Avesoro also warned that Gold production for July and August was expected to come in at about 16,000 oz and for full-year guidance would be materially reduced from the 180,000 to 200,000 koz range announced on June 10, 2019.

At its Youga mine, the mining fleet capacity had been substantially reduced in the short term after a detailed assessment of the damage incurred to property during the previously reported security incident revealed that a number of haul trucks, excavators and auxiliary equipment within the heavy mining equipment fleet were vandalised beyond repair.

'The company has experienced significant ore dilution at the Gassore pit at Youga, and following recent events, the company is currently assessing the longer-term viability of ongoing mining operations at Youga and will make a further announcement in this regard in due course,' the company said.

At its Liberty mine, following further substantial rainfall and a reassessment of the situation, it was 'now anticipated that there could be no access to ore until early September depending on the amount of rainfall in the meantime,' it added.


At 8:35am: [LON:ASO] Avesoro Resources Inc. share price was +16.5p at 85.5p



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