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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (18104)	4/21/2008 10:32:53 AM
From: LoneClone	Read Replies (1) \| Respond to of 193374

Eldorado Gold bids $148 million for Frontier Mon Apr 21, 2008 8:22am EDT reuters.com TORONTO (Reuters) - Eldorado Gold Corp (ELD.TO: Quote, Profile, Research) said on Monday it has made a friendly $148.2-million offer for junior peer Frontier Pacific Mining Corp (FRP.V: Quote, Profile, Research), and that it would go hostile if the bid is rejected. The share-based bid, which Eldorado said was made late last week, gives 0.122 of an Eldorado common share for each Frontier share. The offer, which values each Frontier Pacific share at $0.90, represents a 28.6 percent premium based on the stock's closing price on Friday. A successful takeover would give Eldorado, a mid-cap gold miner, Frontier's Perama Hill gold project in northeastern Greece. Frontier said earlier this month the environmental impact study on Perama Hill still awaited approval from the Greek government. Frontier, which has three key gold and uranium projects in Europe and South America, also said it was in financing discussions with banks for Perama Hill, which contains an indicated 1.36 million ounces of gold. Eldorado said on Monday it had the financial heft bring Perama Hill into production with no additional share dilution, and that the acquisition would drive its growth strategy in that region of Europe. The Vancouver-based miner said it made the friendly offer after "various discussions" with Frontier over "several years," and that now it has the backing of Frontier's biggest shareholder, 25-percent owner Dundee Precious Metals. "In the event that a consensual transaction cannot be reached, which is clearly Eldorado's desire, Eldorado will take its proposal directly to Frontier Pacific's shareholders," it said. (Reporting by Jonathan Spicer; Editing by Bernadette Baum)