The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Northquest Ltd. Dec. 15 announced that Nord Gold N.V. - a Netherlands-based gold producer with operations in Russia, Kazakhstan, Burkina Faso and Guinea - intends to make an all-cash offer for all of the issued and outstanding Northquest shares it doesn't already own at a price of C25.3 cents per share.
This offer is slightly higher than the minimum outlined in a subscription agreement the two companies entered into on June 1.
In late November, Nord Gold invested C$5 million to buy 17.5 million Northquest shares, through the exercise of all the warrants it held in connection with previous investments.
As a result, the Netherlands-based company holds 55.575 million Northquest shares, or about 52.3 percent on a non-diluted basis.
A special committee of Northquest's board of directors is reviewing and evaluating Nord Gold's informal offer with its financial and legal advisors.
Northquest recommends that shareholders take no action until the directors make a recommendation as to the merits of the offer.
Nord Gold has also announced its intention to requisition a special shareholders meeting for the election of a new slate of directors to the Northquest board.
While Nord Gold has said it intends to make the offer, Northquest notes that it has not yet received a formal offer from the company.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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