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Avesoro weighs private path

Avesoro Resources (LSE: ASO) got a share price bounce this morning after the company announced its main shareholder wanted to buy out minorities for £1 per share. The gold miner traded up nearly 29% to 85p, valuing the company at about £70 million.
Avesoro weighs private path Avesoro weighs private path Avesoro weighs private path Avesoro weighs private path Avesoro weighs private path

Avesoro Resources will announce lower full-year gold production guidance soon

Staff reporter

Avesoro Jersey Limited, which owns 72.9% of Avesoro Resources, says holders of a further 12.9% of the company supported its bid.

"The proposal is to be considered by a special committee comprising the independent directors to consider the proposal, take independent legal advice and commission an independent valuation," Avesoro Resources said today.

The company, which has had problems at its Youga mine in Burkina Faso and New Liberty in Liberia this year, said mining and milling at Youga had resumed after armed artisanal miners threatened the site and caused a suspension. "No damage was sustained to the process plant or its associated facilities with the mining equipment being the focus of the incident," Avesoro said.

However, it said ore dilution had been significant at Youga's Gassore pit and it was assessing the "longer-term viability of ongoing mining operations at Youga".

Access to ore at New Liberty won't be possible until next month following a recent pit deluge.

Avesoro said the disruptions at both mines meant full-year gold output and cost guidance was under review. "Previous guidance is suspended pending that review," it said.

"Gold production for July and August is expected to be circa 16,000oz and it is therefore anticipated that full year guidance will be materially reduced from the 180,000-200,000oz range announced on June 10, 2019."