CANADA'S Eldorado Gold has approached Australia's Andean Resources with a proposal to create "the world's fastest growing" gold producer.
But the Vancouver-based company’s plan, which it said would also create the world’s “lowest cost” producer, already appears to have been overtaken.
The dual-listed Andean subsequently called a trading halt on its Australian-listed shares, saying it is in talks with another unnamed party and adding these discussions are expected to lead to a major corporate announcement. Andean didn't provide other details.
Shares of Andean, which also has a listing in Toronto, entered a trading halt after soaring $1.51, or 31 per cent, to a record $6.40, or a market value of about $3.5 billion.
Eldorado said its proposal was for a share exchange at a fixed ratio of 0.310 Eldorado share for each Andean share, through a friendly transaction supported by most Andean directors.
The proposal "is extremely compelling" for Andean shareholders, Eldorado, said, and follows an earlier initial approach to Andean on August 18 that valued Andean at $C6.36 a share and that was verbally rejected by Andean's board.
Andean is developing the high-grade, low-cost Cerro Negro Gold Project in Argentina, which contains 2.1 million ounces of gold and 20.6 million ounces of silver in probable reserves.
If the proposal proceeds, Andean shareholders will own 24 per cent of the combined company.
No comments:
Post a Comment