Jan 23 Aurizon Mines Ltd advised shareholders on Wednesday to reject an unsolicited C$780 million ($785.1 million) takeover offer from rival gold miner Alamos Gold Inc, saying the proposal was inadequate and opportunistic.
Alamos, which owns and operates the Mulatos mine in Mexico, made the C$4.65 per share offer on Jan. 14.
Aurizon's shares closed above the offer price at C$4.74 on the Toronto Stock Exchange on Tuesday.
The offer fails to compensate Aurizon shareholders for the true value of its assets, said George Brack, chair of the special committee of the Aurizon board.
Vancouver, British Columbia-based Aurizon, which operates the Casa Berardi gold mine in Quebec, set up the committee to review the Alamos proposal.
"We also believe there is increased geopolitical and development risk associated with Alamos shares," Brack said in a statement.