Avesoro Resources boosts portfolio with two gold mines in Burkina Faso

West Africa-focused miner Avesoro Resources (AIM:ASO) has acquired two gold mines in Burkina Faso, adding to its New Liberty mine in Liberia and its Batouri license in Cameroon.

The company will purchase the Youga and Balogo mines from its majority shareholder Avesoro Jersey in a cash and share deal worth US$69.5 million, making it the seventh largest gold miner listed in London.

Avesoro Jersey will receive 2.03 million further shares valued at around $51 million and a further $18.5 million in cash, which has been raised via a share placement.

“The assets will provide Avesoro with geographic diversity within West Africa and are highly complementary to our existing New Liberty mine, significantly increasing Avesoro’s gold production,” said CEO Serhan Umurhan.

“In conjunction with the turnaround at New Liberty, this acquisition marks a significant next step in achieving our long term plan to become a premier mid-tier African gold producer.”

Incorporating the new mines, Avesoro is poised to produce around 230,000 ounces of gold in 2018, and increased its gold production proforma for 2017 to between 180,000 and 190,000 ounces.