Western Australian producer Mount Edon Gold Mines has accepted a sweeter takeover offer from Teck (TEK-T) and Australian partner Camelot Resources.
Teck and Camelot recently increased their bid to A$2.25 per share from an offer, made in January, of A$2.15. The deal is now worth $178 million. Mount Edon has 77 million shares outstanding on a fully diluted basis. The board of directors of Mount Edon has unanimously agreed to recommend shareholder approval.
Teck acquired a 14.5% interest in Camelot in June 1996. The two companies are committed to seeking out projects capable of producing in the order of 100,000 oz. gold per year and which offer exploration potential.
Mount Edon produces 100,000 oz. gold per year from its Tarmoola open-pit mine in Western Australia. Reserves there stand at 14 million tonnes grading 2.3 grams gold, equivalent to 1 million contained ounces. The mine has an additional resource of 1.1 million oz.
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