Poursuite... Aurizon VS Northgate
Aurizon Mines Ltd (C-ARZ) - Street Wire
Aurizon sues Northgate, claims its bid breached deal
2006-06-16 20:43 ET - Street Wire
Shares issued 145,122,548
ARZ Close 2006-06-16 C$ 2.84
Also Street Wire (C-NGX) Northgate Minerals Corp
by Stockwatch Business Reporter
Northgate Minerals Corp.'s takeover bid for Aurizon Mines Ltd. just got a bit more hostile. Aurizon Mines has filed a statement of claim in the B.C. Supreme Court claiming Northgate breached an agreement made on October, 2005 (Northgate agreement).
Northgate agreement
Aurizon claims the agreement with Northgate was designed to facilitate a possible merger. According to this "confidentiality and standstill agreement," Northgate agreed to refrain from buying Aurizon shares or any other securities without Aurizon's prior written approval for one year, starting Oct. 19, 2005. Northgate also agreed not to influence Aurizon's shareholders nor to seek control of its management, board of policies. Aurizon claims Northgate breached this deal by buying 515,000 shares, talking with shareholders about buying Aurizon shares and ultimately launching a buyout offer on June 1, 2006.
From Feb. 13, 2006, to Feb. 27, 2006, Aurizon claims Northgate bought 515,000 Aurizon shares. Northgate then allegedly sold the shares at a profit in March, 2006. In May 23, 2006, Northgate (or its subsidiary Northgate Acquisition ULC) talked to shareholders about a possible deal to buy their shares. Finally, Northgate filed its takeover bid on June 1, 2006.
Aurizon says all these actions were in breach of its October, 2005, agreement with Northgate. It says it suffered damages as a result. The alleged damages included costs for responding to the June 1 takeover bid. The plaintiff seeks a declaration that the Northgate agreement remains in effect, an injunction, costs and damages for breach of contract.
Aurizon's claims have yet to be proven in |
