Aim-listed gold miner Avesoro Resources has agreed to buy two producing mines in Burkina Faso in a "transformational" move for the company.
Avesoro will acquire the Youga and Balogo gold mines in a cash and stock deal worth $69.5m (£52.4m), creating the seventh largest London listed gold miner.
The miner conditionally raised around £15.2m through a placing of 797m shares priced at 1.9p a share to help fund the deal.
The deal puts Avesoro a step closer to achieving its goal of becoming a 500,000-ounce gold producer by 2019.
With the new mines, Avesoro will produce around 230,000 ounces of gold in 2018. For 2017, the miner increased its forecast proforma gold production to between 180,000 ounces and 190,000 ounces.
Chief executive Serhan Umurhan said:
The assets will provide Avesoro with geographic diversity within West Africa and are highly complementary to our existing New Liberty mine, significantly increasing Avesoro’s gold production, in addition to adding high quality exploration upside that will provide for further future organic growth.
In conjunction with the turnaround at New Liberty, this acquisition marks a significant next step in achieving our long-term plan to become a premier mid-tier African gold producer.