Toro Gold hires bank to explore sale as IPO plans shelved -sources – by Clara Denina (Reuters Africa – June 7, 2019)

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LONDON, June 7 (Reuters) – West Africa-focused junior gold miner Toro Gold has hired boutique investment bank Raymond James to explore putting itself up for sale after shelving plans to list its shares in London, two sources with knowledge of the matter said.

But attracting buyers won’t be easy for the company that has just one producing asset in Senegal and is targeting a valuation of up to $300 million, the sources added.

Toro Gold started preparing last year for a London listing, sources said at the time, but it is now exploring a sale as initial public offerings of small capitalisation miners are no longer generating interest, even to risk-seeking investors.

The company declined to comment and Raymond James did not respond to a request for comment. Toro Gold started production from the Mako project in Senegal in 2018, eight years after discovery, with a total 157,000 ounces mined. It is further exploring in Senegal, Ivory Coast and Guinea.

The company said on its website that it had achieved production ahead of schedule and under budget.

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