Jul 16, 2009
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Randgold, AngloGold bid $488 mln for Moto Goldmines

Jul 16, 2009

LONDON, July 16 (Reuters) - African miners Randgold Resources Ltd (RRS.L) and AngloGold Ashanti (ANGJ.J) teamed up on Thursday 16 July to make a counterbid worth C$546 million ($488 million) for Moto Goldmines (MGL.TO), which owns a project in the Democratic Republic of Congo.

Randgold's operation in Morila

They said their cash-and-shares bid worth C$5.00 per share is superior to a friendly all-share deal with Red Back Mining (RBI.TO) announced on June 1. [ID:nN01457661]

"Randgold's strong, experienced technical and management teams ... will be combined in the development of the Moto Gold project with the technical and financial capabilities of AngloGold, Africa's largest gold producer," a statement said.

Randgold said it would offer 0.7061 of one of its London shares or $4.47 (C$5.00) in cash for each Moto share, with the total cash payment capped at $244 million.

The price represents a premium of 7 percent based on Wednesday (15 July)'s closing share prices or a premium of 60 percent based on share prices before the Red Back offer was announced.

Moto shares in Toronto closed at C$4.67 on Wednesday 15 July.

South Africa's AngloGold, the world's third biggest mining group, will finance the cash portion of the offer as partial payment for an indirect 50 percent interest in Moto.

Randgold would be the operator of the Moto mine.

(Reporting by Eric Onstad; Editing by Jon Loades-Carter)

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