African gold miner Randgold Resources has beaten off competition by Red Back Mining to acquire Moto Goldmines in a deal that values Moto at C$534m.

Moto, which is focused on the exploration of the Moto Gold project in the Democratic Republic of Congo, will pay a termination fee of C$15.2m to Red Back Mining.

AngloGold Ashanti has agreed to fund the deal’s cash component and to jointly fund the development of the Moto Gold project to acquire an indirect 50% stake on the completion of the deal, Randgold said.

The transaction provides Moto shareholders with 0.07061 of an ordinary Randgold share for one Moto share and an option to receive $4.47 for every Moto share payable up to $244m, Randgold said.

Upon full cash take-up, Randgold will issue 3.9 million shares and pay about $244m in cash to Moto shareholders.