Wolfden Resources endorses $338M takeover offer from Zinifex of Australia
Mon Mar 19, 2:28 PM
ca.news.finance.yahoo.com
TORONTO (CP) - On the recommendation of a special committee of directors, Wolfden Resources Inc. (TSX: WLF.TO) is endorsing a revised $338-million takeover offer from Zinifex Ltd. of Australia, worth $3.81 a share.
Wolfden owns the undeveloped High Lake copper, zinc, gold, silver deposit and the Izok gold project in Nunavut, as well as the Bonanza and East Bay gold projects in Ontario.
"The board of directors has approved the entering into of the support agreement and recommends that Wolfden's shareholders accept the offer," Wolfden said Monday in a release.
Before completing due diligence, Zinifex had said it planned an offer of $345.7 million or $3.90 a share.
The special committee and the board of directors received the verbal opinion of BMO Capital Markets that the revised offer was "fair from a financial point of view" and every Wolfden director and senior officers has agreed to tenders shares to the bid.
The offer, open for acceptance for at least 36 days. remains conditional on more than two-thirds of Wolfden's outstanding common shares. And after a takeover, jobs will go to Ewan Downie, CEO of Wolfden, Steven Filipovic, vice-president for finance, and John Begeman, chief operating officer.
Inmet Mining Corp. (TSX: IMN.TO) and Goldcorp Inc. (TSX: G.TO) have also entered into lockup agreements to tender 13.5 million shares and six million shares, respectively. That leaves Zinifex with lockup deals for 27 per cent of Wolfden's shares.
In Monday afternoon trading on the TSX, Wolfden was up 23 cents, or 6.6 per cent, at $3.74 on a volume of 4.9 million shares. |
