agle Eye soars on Mali gold deal ,Gold prices

Subject: agle Eye soars on Mali gold deal ,Gold prices Wed Mar 09, 2011 6:38 am

Shares in Eagle Eye Metals soared after the minerals exploration tiddler announced it would acquire West African gold projects through the recommended takeover of Birimian Gold.

Eagle Eye shares were up seven cents, or 107.69 per cent, at 13.5 cents at 10.50am after hitting an earlier peak of 25 cents.

The company said it had entered into a memorandum of understanding with Birimian's board whereby Eagle Eye would offer three of its shares for each Birimian share.

Based on Eagle Eye's higher share price, the scrip bid values the target at about $2 million.

Birimian's main projects are in Mali, the third largest gold producing nation in Africa, and include the Dankassa and Korindji projects.

Korindji is next to AngloGold Ashanti's 13 million ounce Sadiola gold mine.

"The acquisition of these gold mining projects in an extremely active exploration and production region is the culmination of a long search by Eagle Eye to acquire a major project with company maker potential," Eagle Eye chairman Wayne Ryder said in a statement.

If the transaction is successfully completed, Birimian directors Kevin Joyce, Hugh Bresser and Mike Haynes will join Eagle Eye's board.

Mr Ryder said the Mali gold assets came with qualified industry experts to manage the projects.

They would also assist the company with its existing gold and nickel/cobalt projects in WA.
The transaction is subject to the approval of both companies' shareholders.
http://au.news.yahoo.com/thewest/business/a/-/wa/8979547/eagle-eye-soars-on-mali-gold-deal/

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