takeover bid?, page-4

http://www.theaustralian.com.au/business/mining-energy/canadian-takeover-bid-for-cga-mining/story-e6frg9df-1226477431942


CANADA'S B2Gold has agreed to buy Perth-based CGA Mining in a $C1.1 billion ($1.08 billion) scrip deal as consolidation in the sector continues.

It is understood the deal, which will create a $C3bn miner, will be unveiled in Canada overnight.

Gold sector takeovers are expected to drive mining mergers in the short term as gold prices remain high but access to development funds for smaller miners remains limited.

There is also a call from investors for the smaller miners to combine and grow in scale to reduce specific-project risk.

CGA shares are in a trading halt after last trading at $2.55, giving the company a market value of about $850 millon. The deal is believed to be at a premium of about 25 per cent on the last-traded price.

CGA, which is listed in Australia and Toronto, produces about 100,000 ounces of gold a year from the Masbate gold mine in the Philippines.

Vancouver-based B2Gold has mines in Nicaragua.