Completion of Acquisition of the Youga Gold Mine and Balogo Gold Mine from Avesoro Jersey Limited

December 18, 2017


18 December 2017

Avesoro Resources Inc.



Completion of Acquisition of the Youga Gold Mine and Balogo Gold Mine from Avesoro Jersey Limited

Further to the announcement on 31 October 2017, Avesoro Resources Inc., (“Avesoro” or the “Company”), the TSX and AIM listed West African gold producer, is pleased to announce the completion of its acquisition of the Youga Gold Mine and Balogo Gold Mine from Avesoro Jersey Limited (the “Acquisition”). The Company has also concurrently completed the previously announced placing of new common shares which has raised approximately £15.2 million (approximately US$20.0 million).

This completion represents a transformational acquisition for the Company adding two producing mines to Avesoro’s portfolio, with operations in both Liberia and Burkina Faso.

Serhan Umurhan, Chief Executive Officer of Avesoro, commented:

“I am delighted to announce the completion of the acquisition of Youga and Balogo Gold Mines from Avesoro Jersey Limited. Youga and Balogo will strengthen and diversify our portfolio within West Africa and will be highly complementary to our existing New Liberty Mine.

This has been a significant year for the Company and one of transition. New Liberty has been stabilised and now stands to produce between 70,000 – 80,000 ounces this year, alongside the 110,000 ounces to be produced during 2017 at Youga and Balogo, with further production growth expected next year. A major factor contributing to the turnaround at New Liberty has been the in-sourcing of multiple business functions resulting in substantial long-term cost savings and improvements in productivity which have resulted in positive EBITDA performance each quarter this year.

With the completion of the acquisition and resulting growth in our portfolio, the Company will end the year having taken a significant step forward in achieving its stated plan to become a premier mid-tier African gold producer.”

Following the completion of the Acquisition, the issued share capital of the Company comprises of 8,155,700,823 shares. As a result of the Acquisition, Avesoro Jersey Limited increased its shareholding in the Company by 2,033,492,822 shares to 5,945,715,251 shares representing approximately 72.9% of the Company’s issued share capital. As a result, Mr Serhan Umurhan, Chief Executive Officer of the Company’s indirect beneficial interest in the Company decreased to approximately 2.19% of the Company’s issued share capital.

Contact Information

Avesoro Resources Inc.

Geoff Eyre / Nick Smith

Tel: +44(0) 20 3874 4740


Gordon Poole / Nick Hennis

Tel: +44(0) 20 3757 4980

Numis Securities Limited

(Nominated Adviser and Joint Broker)

John Prior / James Black / Paul Gillam

Tel: +44(0) 20 7260 1000

Hannam & Partners (Advisory) LLP

(Joint Broker)

Rupert Fane / Ingo Hofmaier / Ernest Bell

Tel: +44(0) 20 7907 8500

The information below, set out in accordance with the requirements of the EU Market Abuse Regulation, provides further detail on the PDMR dealing.



Details of the person discharging managerial responsibilities/person closely associated



Serhan Umurhan


Reason for the notification



Director and Chief Executive Officer


Initial notification/ Amendment

Initial notification


Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor



Avesoro Resources Inc.





Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted


Description of the financial instrument, type of instrument

Identification code


Common shares of no par value (“Shares”)

ISIN for Avesoro Resources Inc. common shares: CA0515471070


Nature of the transaction

Indirect beneficial interest in the Shares acquired pursuant to vendor consideration


Price(s) and volume(s)






Aggregated information

– Aggregated volume

– Price




Date of the transaction

18 December 2017


Place of the transaction

Off market

About Avesoro Resources Inc.

Avesoro Resources is a West Africa focused gold producer and development company that operates three gold mines across West Africa and is listed on the Toronto Stock Exchange (“TSX”) and the AIM market operated by the London Stock Exchange (“AIM”). The Company’s assets include the New Liberty Gold Mine in Liberia (the “New Liberty Gold Mine” or “New Liberty”) and the Youga and Balogo Gold mines in Burkina Faso (“Youga” and “Balogo”).

New Liberty has an estimated proven and probable mineral reserve of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an estimated measured and indicated mineral resource of 9.6Mt with 985,000 ounces of gold grading 3.2g/t and an estimated inferred mineral resource of 6.4Mt with 620,000 ounces of gold grading 3.0g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith is set out in an NI 43-101 compliant Technical Report dated 1 November 2017 and entitled “New Liberty Gold Mine, Bea Mountain Mining Licence Southern Block, Liberia, West Africa” and is available on SEDAR at

Youga and Balogo have a combined estimated proven and probable mineral reserve of 9.3Mt with 513,000 ounces of gold grading 1.7g/t and a combined estimated indicated mineral resource of 16.05Mt with 801,600 ounces of gold grading 1.55g/t and a combined inferred mineral resource of 13Mt with 655,000 ounces of gold grading 1.57g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith is set out in two NI 43-101 compliant Technical Reports, dated 16 June 2017 entitled “Mineral Resource and Mineral Reserve Update for the Balogo Project” and dated 19 June 2017 and entitled “Mineral Resource and Mineral Reserve Update for the Youga and Ouaré Projects” and are available on SEDAR at

For more information, please visit

Qualified Persons

The Company’s Qualified Person is Mark J. Pryor, who holds a BSc (Hons) in Geology & Mineralogy from Aberdeen University, United Kingdom and is a Fellow of the Geological Society of London, a Fellow of the Society of Economic Geologists and a registered Professional Natural Scientist (Pr.Sci.Nat) of the South African Council for Natural Scientific Professions. Mark Pryor is an independent technical consultant with over 25 years of global experience in exploration, mining and mine development and is a “Qualified Person” as defined in National Instrument 43 -101 “Standards of Disclosure for Mineral Projects” of the Canadian Securities Administrators and has reviewed and approved the scientific and technical disclosures contained in this announcement.