Oxiana to buy out Agincourt to gain control of N. Sumatra gold project

ASX-listed mining firm Oxiana Limited on Monday announced offer to buy all shares of another Australian firm Agincourt Limited, valuing the target company at A$415 million.

Oxiana said that the board of Agincourt has recommended Agincort shareholders to accept the offer in the absence of superior offer. The offer is also supported by Newmont Mining Corp., Agincourt major shareholder, Oxiana said.

Agincourt major asset is Martabe gold project in North Sumatra, which it acquired from Newmont last year. Martabe has resources of 5.8 million ounces of gold and 60 million ounces of silver, with potential for further resource expansion.

?Agincourt?s Martabe gold project will significantly enhance Oxiana?s gold portfolio, increasing the company?s gold resources base to 16 million ounces. Martabe will add an advanced and significant project in Indonesia to Oxiana?s recent exploration JV with Kalimantan Gold. It?s Oxiana?s intention to maintain the focused approach to timely development of the Martabe project, subject to the results of the ongoing feasibility study,? Oxiana said.

Oxiana said it was offering Agincourt?s shareholders 0.65 Oxiana shares for every 1 Agincourt share. (alex)