Oklo shareholders are poised to get a substantial payoff after the board unanimously recommended a takeover offer from Canada’s B2Gold that values it at $90m, or 17.25c per share.

The offer of 0.0206 B2Gold shares and 5.25c cash per Oklo share represents a very healthy  103% premium to the 30-day volume weighted average price, which is also a premium to any price at which they have traded at on the ASX in the past 12 months.

The Oklo Resources (ASX:OKU) board said shareholders will receive liquidity for the shares while retaining exposure to any future upside in the high-grade Dandoko project in Mali through the shares in B2Gold.

All directors in the company intend to accept the offer in the absence of a superior proposal or the independent expert concluding the Scheme is not in the best interests of shareholders.

Time right to de-risk

“The B2Gold proposal was welcomed by the Oklo directors and comes at an opportune time for Oklo shareholders to crystallise value and de-risk their investment in the company,” managing director Simon Taylor says.

“Whilst the Oklo team continues to see significant potential in the Dandoko Project and the region generally, Dandoko is at an inflection point and this transaction removes the risks associated with project development, future capital raisings and other risks faced by a junior gold explorer in a foreign jurisdiction.

“Considering B2Gold’s compelling offer along with the risks involved in Oklo pursuing a ‘go it alone’ strategy, the board has resolved that the opportunity to combine with a well funded, substantial multi-asset gold producer represents a highly attractive outcome for Oklo shareholders.

“B2Gold has proven operating capabilities in Mali and the Oklo Directors are proud to be handing the Dandoko Project over to a new custodian with confidence.”

Other transaction details

The B2Gold offer is subject to customary conditions such as court approval, no material adverse events and Oklo’s representations and warranties being materially true and correct.

It also includes a funding agreement that ensures that Oklo is fully funded through to transaction completion.

Upon its implementation, Oklo shareholders will own about 1% of the B2Gold shares on issue.

The 668,500oz Dandoko project is located just 30km east of B2Gold’s 7.1Moz Fekola mine and will also give the Vancouver-based company an additional 1,405km2 of highly prospective greenstone belts in Mali.



This article was developed in collaboration with Oklo Resources, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.