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Mariana receives premium offer

As we expected, Mariana has received a takeover offer.
April 27, 2017

In November, we tipped gold minnow Mariana Resources (MARL) in the belief that the world-class grades at its Hot Maden prospect in Turkey would attract the notice of a larger, cashed-up metals producer. This week, Mariana did indeed receive a cash-and-share offer. The bidder turned out to be an existing minority shareholder, US-listed gold royalty outfit Sandstorm Gold (US:SAND).

IC TIP: Hold at 87p

Under the terms of the deal, Mariana has been valued at just under £167m, or 110p a share, an 84 per cent premium to the 59.5p closing price on 25 April. Existing Mariana investors will receive 28.75p per share and 0.2573 Sandstorm shares for every share owned, which will equate to approximately 19 per cent of the US company's enlarged share capital.

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