Subiaco-based Allied Gold plans to make a friendly all-scrip takeover offer for Toronto-listed Australian Solomons Gold in a deal valued at about $60 million.
Directors in Brisbane-headquartered Australian Solomon Gold and 40.62 per cent shareholder, Resources Capital Fund III have already indicated they will accept the offer.
RCF has already entered into an agreement with Allied Gold in respect of 19.9 per cent of its shares.
An independent report by Gryphon Partners has deemed the offer fair.
Allied Gold plans to offer 0.85 of its shares for every ASG share held, with the offer implying a value of C43 cents per ASG shares based on yesterday's closing price and exchange rate.
The offer has a minimum acceptance level of 50.1 per cent.
Should the merger go ahead, the combined entity will hold a host of assets in the Pacific Rim region, with ASG in the financing phase for the redevelopment of the Gold Ridge project on the Solomon Islands.
Allied Gold's flagship asset is the Simberi gold project in Papua New Guinea.
Allied said it plans to list on the Toronto Stock Exchange following the completion of the takeover, expected in mid-November.
