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Proposed transaction values Moto at C$546 million

In breaking news Thursday, Randgold Resources  (NASDAQ: GOLD, Stock Forum) announced that it has approached the board of directors of TSX-listed Moto Goldmines (TSX: T.MGL, Stock Forum) regarding a proposed business combination worth C$546 million.

Randgold says it has proposed to enter into an arrangement agreement providing for the exchange of each outstanding common share of Moto for the equivalent of C$5.00 per share.

Under the proposed transaction, Moto shareholders would receive 0.07061 of an ordinary share of Randgold per Moto share.

In lieu of shares, Moto shareholders would also be provided the option to elect to receive cash consideration of C$5.00. As part of the deal, AngloGold Ashanti Limited (NYSE: AU, Stock Forum) has agreed to fully fund the cash alternative in partial payment for an indirect 50% interest in Moto.

Last month, Red Back Mining (TSX: T.RBI, Stock Forum) offered to acquire Moto for C$513 million.

“...the Board of Randgold believes that the Proposed Randgold Transaction is superior to the transaction proposed by Red Back Mining Inc,” says Randgold.

Randgold is focused on West and East Africa, while Moto Goldmines has a gold project in the Democratic Republic of Congo.

 
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