Australia's Adamus Resources said on Thursday it expects a friendly takeover by Canada's Endeavour Mining Corp to be completed in early November, creating a West Africa-focused company producing a quarter million ounces of gold annually by 2013.
Following talks between the two companies, Endeavour Mining on August 22 agreed to buy Adamus in a deal valued at about C$313.4 million, to create a West Africa-focused gold producer.
We are hopeful the documentation for the merger - only announced last week - will be completed as early as November, which is quite rapid considering the proposed transaction only got off the ground in June, Adamus Managing Director Mark Connelly said.
Connelly told a mining conference combined gold production from both companies would be around 172,000 ounces, coming from Endeavour's Youga mine in Burkina Faso and Adamus' Nzema mine in Ghana.
The increase would come from new production from Endeavour's Agbaou mine in Ghana, he said.
Ghana is Africa's second-largest gold miner behind South Africa and has benefited from record gold prices , with output rising 1 percent in 2010 to 2.97 million ounces.
Under the deal, Adamus shareholders will receive 0.285 of an Endeavour stock for each share held.