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Crescent Gold off-market takeover by Focus Minerals extended by two weeks

Crescent Gold (ASX: CRE, TSX: CRA) is currently under an off-market takeover offer from Focus Minerals (ASX: FML), with Focus announcing the offer will be extended by two weeks until Monday 15 August 2011.

Crescent shareholders have been accepting the Focus offer, with Focus currently holding 36.2% of Crescent - with the Crescent directors already provided acceptances.

Focus is offering one share for every 1.18 Crescent, which is conditional on a minimum acceptance of 90% - representing a 30.5% premium.

Focus has received a pre bid agreement in favour of Focus for 19.9% of Crescent from Deutsche Bank group.

In addition, Deutsche Bank has stated an intention to accept the offer for the balance of its holding, around 9.24% of Crescent shares, in the absence of a superior proposal.

The merger will make Focus one of Australia’s top five gold producers with a 230,000 ounce production target in 2012 from multiple open pit and underground operations.

The combined group will have a JORC Resource of 4.3 million gold ounces.

Recently Crescent has been performing very well in boosting gold production, and just last week exceeded production guidance by 8.5% in the June quarter - producing 23,871 gold ounces for a gross value of around US$36 million, based on a spot of US$1500.