Ecuador - Kinross offers 1200 million USD for mining golden project in Zamora Chinchipe
25-07-2008 newspaperThe Canadian Kinross offered USD 1.200 millions for the actions that Aurelian has in the project located in Zamora Chinchipe, to the southeast of the Ecuador. Aurelian received a friendly merger proposal on the part of the consortium also Canadian Kinross. The offer includes the buy of 100 % of his actions, for more of USD 1.200 millions.
Aurelian is a concessionaire of a mining project of gold, located in Zamora Chinchipe and who is in exploration phase.
In March of this year Canada (PDAC) received a recognition of the Prospector and Developers Association of, in Toronto, for having realized the biggest golden discovery in the world spread last year.
The initial calculation of his golden reservations in Ecuador is 13,7 million golden ounces and 22,3 million silver ounces.
According to a bulletin of Aurelian published in the Stock Exchange of Toronto, the directorates of both companies approved this proposal, although it will be able to be analyzed in the next 35 days.
According to the Aurelian holder, in Ecuador, Dominic Channer, last Wednesday managers of the signature supported a meeting with the mining authorities of the Ecuadoran Government to communicate this offer.
“It is an attractive offer that is being analyzed by the shareholders' meeting”, he added.
The Kinross offer takes a value of USD 8,20 as every action of Aurelian, what represents an award of 63 % for Aurelian.
The Directorate of Aurelian, after receiving a recommendation of the special committee of the Directors Independientes created to supervise the deal, determined for unanimity that the Kinross offer is beneficial for the Aurelian shareholders. For it he recommended these to sell his actions to Kinross.
According to Cardinal BMO Markets and Dundee Securities, financial advisers of Aurelian, the Kinross offer is “it jousts, from the financial point of view, for his shareholders”, notes down the bulletin of the mining company.
But the merger does not stop worrying the shareholders of Kinross, who showed his worry for the suspense ambience in Ecuador, before Canadian press means.
This for the changes to the mining regulation approved by the Assembly last April 19. It supposed a fall of more than 50 % in the value of the shares of Aurelian on this day. There is in agenda the approval of a project of the new Mining Law, which still has not been spread by the Diet, although it is ready for three weeks.
25-07-2008
