The offered price is 55.6% premium on the closing price of La Mancha’s common shares on the Toronto Stock Exchange as on 12 July 2012.
La Mancha president and CEO Dominique Delorme said the transaction benefits all of the company’s stakeholders.
"While offering a significant premium to our shareholders, this transaction will enable the La Mancha team to pursue the development of its projects with its partners in Sudan, Côte d’Ivoire and Australia with the support of a strong financial partner," Delorme said.
Weather II chairman & CEO Naguib Sawiris said, "The Company represents an extremely attractive opportunity with a geographically diverse portfolio of assets offering exposure to growth and development stage projects."
La Mancha organized a special committee of independent directors to analyze the best acquisition proposal and consulted its financial advisers, BMO Capital Markets, and legal advisers, Fasken Martineau DuMoulin.
The company after receiving unanimous recommendation from the special committee and its board of directors has recommended its shareholders to accept the offer.
As per the agreement the La Mancha cannot consider other acquisition proposals and the company would have to pay $15m to Weather II if the deal is terminated.
Weather II intends to begin its offer and mail a take-over bid circular within 15 days of the agreement is signed and will give La Mancha 35 days to accept the offer.
La Mancha Resources, a 63% owned subsidiary of AREVA is an international gold producer based in Canada.
Weather II is one of the businesses managed by Naguib Sawiris.
