ASX-listed gold explorer Oklo Resources [ASX:OKU] looks set to be bought by B2Gold for A$90m approximately. B2Gold [NYSE:BTG] will be buying 100% of the gold explorer, which has been prospecting in Africa. Oklo shareholders will receive consideration with an implied value of A$0.1725 per Oklo share, including 0.0206 B2Gold shares per Oklo share and A$0.0525 cash per Oklo share.
The deal is valued at a 127% premium on Oklo’s last closing price of $0.076 on 25 May. It is a 103% premium to the VWAP of Oklo shares over the 30 ASX trading days prior to the announcement. It is also a premium to any price which Oklo shares have traded at on the ASX for the past 12 months.
B2Gold: seasoned explorer and producer in gold space
B2Gold is an international, senior gold producer based in Vancouver and listed on both the TSX and the NYSE. It already has three operating gold mines in Mali, Namibia and the Philippines. It has exploration and development projects on the go in several countries, among them Colombia and Finland. On full implementation of the deal, Oklo shareholders will own 1% of B2Gold.
Oklo Resources itself is an ASX listed gold exploration company with a total landholding of 1,405 sq km covering highly prospective greenstone belts in Mali. It is currently focused on its West Mali landholding, especially the flagship Dandoko project located east of the prolific Senegal-Mali Shear Zone. In March 2021 it delivered an initial measured, indicated and inferred JORC 2012 compliant resource of 11.3mt at 1.83 g/t gold for 668.5kOz contained gold. This encompassed the Seko, Koko, Disse and Diabarou deposits, which all remain open and are expected to grow with ongoing drilling either along strike or at depth.
Oklo’s managing director Simon Taylor said he felt the deal was coming at an opportune time for Oklo shareholders to crystalise value and de-risk their investment in the junior miner. “Whilst the Oklo team continues to see significant potential in the Dandoko project and the region generally, Dandoko is at an inflection point and this transaction removes the risks associated with project development, future capital raisings and other risks faced by a junior gold explorer in a foreign jurisdiction,” he explained.
Board gets behind B2 Gold offer
The board of Oklo Resources said it felt the offer from B2 Gold represented “a highly attractive outcome” for shareholders, especially given that B2Gold has proven operating capabilities in Mali. It is unanimously recommending the deal to Oklo shareholders. Each Oklo director intends to vote, or cause to be voted, all Oklo shares in which he/she has a relevant interest, in favour of the deal.
The deal will still be subject to shareholder approval and a meeting is to be held to vote on this at some point in August 2022. A funding agreement is in place from B2Gold to ensure Oklo is fully funded through to transaction completion. It will also require court approval, and sign off from Mali’s Minister of Mines of the indirect transfer of ownership of mineral rights granted to Oklo.
Oklo will also need to regularise all material cross-border intercompany loans in Mali and execute a loan agreement with retroactive effect.
