AUX extends offer for Ventana
miningweekly.com
By: Liezel Hill
21st January 2011
TORONTO (miningweekly.com) - AUX Canada Acquisition, a firm controlled by Brazil's EBX Group, has extended its offer to buy Canadian junior Ventana Corp until 20:00 Toronto time on February 15.
The offer, of $12,63 a share, would otherwise have expired on January 24.
The new date is 60 days from the launch of the offer and 90 days after AUX announced plans for the bid.
Ventana's main asset is the La Bodega gold project in Colombia, for which the company published an initial 3,5-million-ounce inferred resource in October.
On December 23, the company's board of directors recommended that shareholders reject the AUX offer, and said it was looking at options for other transactions.
The La Bodega project is expected to require preproduction capital of $297-million, with average annual production estimated at 301 000 oz of gold, 1,4-million ounces of silver and 6,9-million pounds of copper in the first six full years of operations, according to a scoping study Ventana published in October.
Shares in the company declined 0,5% on Friday, to C$12:85 apiece by 15:47 in Toronto. |
