Pasofino Gold Enters $75 Million Acquisition Exclusivity Agreement for Liberian Gold Project

Pasofino Gold Limited has reached a critical milestone in its strategic review process by entering into an exclusivity agreement with an independent potential buyer who has offered to acquire the company for $75 million in cash. This agreement grants the purchaser exclusive rights until November 7, 2024, to complete due diligence and secure necessary internal approvals, marking substantial progress in the strategic review that began in February 2023.

The company's primary asset, the Dugbe Gold Project located in southern Liberia, represents a significant gold resource in West Africa's Birimian Supergroup region. Covering nearly 1,300 square miles, the project contains estimated reserves exceeding 3 million ounces of indicated gold resources graded at 1.37 grams per ton, plus an additional 0.6 million ounces of inferred resources. Management's decision to pursue acquisition opportunities reflects careful consideration of current gold market conditions, the Dugbe Project's net asset value, and recent merger and acquisition activity for comparable regional projects.

This development follows Pasofino's August announcement regarding interim financing negotiations and engagement with multiple parties about potential acquisition. The company anticipates entering a definitive agreement during the fourth quarter of 2024, though it cautions that no guarantees exist regarding finalizing such an agreement. The potential acquisition carries substantial implications for West Africa's gold mining industry, potentially signaling increased interest from larger mining companies in acquiring junior explorers with promising assets in the region.

The deal could trigger reassessment of valuations for similar gold exploration companies operating throughout Africa, particularly those with significant resource estimates in politically stable jurisdictions. More information about Pasofino Gold is available on the company's website at https://www.pasofinogold.com. The Dugbe Gold Project's substantial resource base and location in Liberia's growing mining sector make it particularly attractive, with potential to accelerate development that could generate job creation and economic benefits for local communities.

As the exclusivity period progresses through November, industry stakeholders will monitor developments closely, as the outcome could establish precedents for similar regional transactions and potentially reshape the landscape for junior gold mining companies throughout West Africa.