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Toro Gold hires bank to explore sale after it puts IPO plans on hold: Reuters
Posted on Friday, 07 June 2019 15:36
Toro Gold, a West Africa-focused and UK-based miner, is considering putting itself up for sale and is hiring a boutique investment bank to assist, people close to the matter told Reuters.
According to these sources, the company is working with Raymond James on the potential auction with hopes of fetching a valuation of USD 300.00 million.
The news comes after Toro Gold shelved plans of a stock market flotation as small capitalisation miners are no longer generating interest, Reuters noted.
Insiders observed that it could be hard for the group to attract buyers as it only has one producing asset in Senegal.
Toro Gold started production on the Mako project there in 2018, eight years after it was first discovered, with a total 157,000 ounces mined to date.
It claims to have an extensive exploration portfolio covering 2,800 km2 of highly prospective Birimian terranes of Senegal, Cote d’Ivoire and Guinea.
Both Toro Gold and Raymond James either declined to comment or were not available when contacted by Reuters.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 328 deals targeting metal ore miners announced worldwide in 2019 to date.
The largest of these involves Newmont Mining buying Canada’s Goldcorp for CAD 12.50 billion (USD 9.33 billion).
Gorno-Metallurgicheskaya Kompaniya Norilskii Nikel of Russia, Belgium-based Nyrstar and China’s Zijin Mining Group, among others, have also been targeted this year.
© Zephus Ltd