12:45 PM EDT, 09/16/2024 (MT Newswires) -- Pasofino Gold ( EFRGF ) on Monday said it signed an exclusivity agreement with an unnamed potential purchaser to acquire the company for US$75 million.

The company, which is in a strategic review process, said the would-be buyer is offering US$0.66, (or C$0.91) per share.

The exclusivity pact ends on Nov.7 as both parties carry out due diligence, with Pasofino expecting to sign a more definitive agreement in the fourth quarter.

"Pasofino's intention is to disclose developments with respect to the strategic review once the board of directors has approved a specific transaction or course of action or otherwise determines that disclosure is necessary or appropriate. Pasofino is issuing this press release to disclose material information related to the strategic review process in order to allow Pasofino to undertake a financing to secure funds necessary to advance the Dugbe Gold Project's Feasibility Study optimization initiatives. It is expected that these initiatives may enhance project economics in this positive gold environment," the company noted.

The company's shares were last seen up $0.06 to $0.75 on the TSX Venture Exchange.