- Write by:
-
Thursday, December 19, 2019 - 12:22:57 PM
-
573 Visit
-
Print
Mining News Pro - Vancouver-based Core Gold has provided the latest details of its ongoing strategic process that resulted in five non-binding confidential proposals being made to the company, including one from an unnamed “senior gold producer” with a market capitalization of $4 billion.
According to Mining News Pro - The unnamed gold miner made an initial proposal back in September, which comprised, among other terms, a C$0.225 a share cash component, the creation of a new company for all Core Gold’s projects in Ecuador other than Dynasty Goldfield, which would be spun out to Core Gold shareholders.
Following due diligence and site visits made by the interested party, a final proposal was submitted to Core Gold last week, with the cash component raised to C$0.33 a share. However, the newly created company would now only own the Copper Duke and Linderos projects, meaning that the suitor would acquire two more assets.
After assessing both the initial and final proposals, Core Gold’s board of directors has unanimously rejected the interested party, stating that the proposals offer no material increase in overall value to Core Gold shareholders.
The final proposal would give the interested party a 19.1% interest in the spinout company and in effect an interest in both the new company and Core Gold at the price of C$0.33 a share.
Core Gold also noted that the spinout company would be undercapitalized, unlisted and have no project with defined mineral resources.
Core Gold is currently subject to an unsolicited offer from Australia’s Titan Minerals, which did not partake in the strategic process despite being invited to.
Last week, Titan announced that it will make an improved offer of 3.1 Titan shares for each Core Gold common share — up from the original offer of 2.5 Titan shares for every Core Gold share.
Shares of Core Gold were down more than 10% at market close Wednesday. The Ecuador-focused gold miner has a market capitalization of C$29.4 million.
Short Link:
https://www.miningnews.ir/En/News/460419
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
Representatives from the Peñas Negras Indigenous community, in northwestern Argentina, clashed with heavily armed police ...
Newmont confirmed on Wednesday that two members of its workforce died this week at the Cerro Negro mine located in the ...
Chinese investors are snapping up stocks tied to high-flying metals from copper to gold, aiding an onshore market facing ...
Outflows from global physically backed gold exchange traded funds (ETFs) continued for a 10th month in March, but at a ...
i-80 Gold fell by over 11% at market open Tuesday following its announcement of a C$100 million ($74m) public offering ...
No comments have been posted yet ...