Shares in Aim-listed Amara Mining jumped today, after the African gold miner received a $85m takeover bid from Perseus Mining.
There's long been speculation about consolidation in the African gold space as smaller, cash-strapped firms look to benefit from their bigger competitors' stronger balance sheets.
The miner's shares jumped as much as 26.8 per cent to 13p per share this morning, on news of the offer which has unanimous support from Amara's board. It will enable the companies to develop Amara's promising Yaoure project in Cote d'Ivoir.
"We believe that the opportunity to merge Perseus with Amara represents an outstanding opportunity to build Perseus's strength through diversification," Jeff Quartermaine, managing Director of perseus, said.
"Amara’s Yaoure Gold Project is in our opinion one of the best undeveloped gold deposits in West Africa and will complement the other mines and projects under our management."
John McGloin, chairman and chief executive of Amara, added: "We believe that a business combination with Perseus will unlock the value of Yaoure and deliver the optimal outcome for the project and Amara’s shareholders."