TORONTO Jan 15 Aurizon Mines Ltd
advised its shareholders on Tuesday to hold off on taking any
action on an unsolicited takeover proposal from rival gold miner
Alamos Gold Inc while it reviews the bid.
Vancouver, British Columbia-based Aurizon, which operates
the Casa Berardi gold mine in Quebec, said it was evaluating the
C$780 million ($791.4 million) offer with its financial and
legal advisors. It also plans to appoint a special committee of
its board members to review the proposal.
Aurizon advised shareholders defer from taking any action on
the Alamos offer until its board makes a recommendation.
Toronto-based Alamos said on Monday that it was making an
offer directly to Aurizon shareholders, as past attempts to
clinch a friendly deal had failed.
In documents filed with Canadian regulators, Alamos outlined
details of three separate attempts made between 2008 and 2011 to
reach a friendly deal, all of which Aurizon's board rebuffed.
Alamos, which owns and operates the Mulatos mine in Mexico,
has offered C$4.65 a share for Aurizon, a 36 percent premium
over the stock's closing price of C$3.41 on Friday. The shares
rose to C$4.55 on Monday.
If Alamos' proposal succeeds, the deal would leave the
company with two producing gold mines in jurisdictions
considered politically stable and create a combined entity with
a market capitalization of about C$2.6 billion.