Pasofino Gold Limited, a Canadian mineral exploration company with a focus on gold, has made headlines with a recent announcement: they’ve signed an exclusivity agreement with a potential buyer for a cash acquisition valued at $75 million. This deal comes on the heels of a strategic review process that Pasofino initiated in February 2023. The company’s decision to pursue this acquisition was driven by a desire to maximize shareholder value, particularly in light of the current gold market and the recent trend of mergers and acquisitions in the African mining sector.
The agreement grants the potential buyer an exclusive window until November 7th, 2024, to complete thorough due diligence and secure all necessary internal approvals. This exclusivity period allows the buyer to conduct a comprehensive assessment of Pasofino’s assets and operations, including the Dugbe Gold Project in Liberia.
The Dugbe Gold Project, located in southwestern Liberia, spans nearly 1,300 square miles and sits within the Birimian Supergroup, known for hosting some of West Africa’s richest gold deposits. Pasofino estimates the mine’s reserves to exceed 3 million ounces of indicated gold resources, with a grade of 1.37 grams per ton. The company also reports approximately 0.6 million ounces of inferred resources.
Pasofino’s decision to explore strategic options for the Dugbe Gold Project has been fueled by several factors. The company’s announcement in August 2023 highlighted its engagement with multiple parties regarding a potential acquisition, citing the favorable gold price environment and the project’s estimated net asset value. Additionally, recent merger and acquisition activity in the African mining sector has provided further impetus for this move.
Following the initial August announcement, Pasofino provided further updates on the strategic review process in September. The company confirmed the exclusivity agreement and revealed its intention to enter into a definitive agreement by the fourth quarter of 2024. While specific terms of the transaction will be announced at a later date, Pasofino has indicated that its insiders have expressed their commitment to subscribing for any common shares not acquired by third parties in the event of a successful acquisition.
While the deal is not yet finalized, the exclusivity agreement signifies a significant step forward for Pasofino Gold. This agreement, if completed, could mark a major milestone for the company and further solidify its position in the global gold mining landscape.
