Business
Bolero announces intention to make a take-over bid for Gryphon Gold Corporation
Bolero announces intention to make a take-over bid for Gryphon Gold Corporation
About this update from Canada Carbon, Inc.
[{"type":"text","content":"\n\n\n\nJan. 20, 2010 (Canada NewsWire Group) -- VANCOUVER, Jan. 20 /CNW Telbec/ -- Bolero Resources Corp. (the \"Company\" or \"Bolero\"), (TSX-V: BRU), (FRANKFURT: U7N1) intends to make a share-exchange takeover bid to acquire all of the outstanding common shares of Gryphon Gold Corporation (\"Gryphon Gold\"), (TSX: GGN), at an implied offer price of approximately $0.25 cents per share (based on Gryphon Gold's January 19th, 2010, closing share price of $0.20) in a transaction which would value the fully diluted share capital of Gryphon Gold at approximately $18 million. Under the proposed offer, Gryphon Gold common shareholders would be entitled to receive one Bolero common share for every two Gryphon Gold common shares held (exchange ratio). Bolero has a thorough understanding of the potential of Gryphon Gold's Borealis Gold Property and other assets, and believes that the proposed exchange ratio and implied premium offered would represent fair value to Gryphon Gold shareholders considering Gryphon Gold's existing debt load.Highlights of the Proposed Offer:---------------------------------- Based on the number of fully diluted Gryphon Gold common shares, aspublicly disclosed, Bolero would plan to issue under the proposed offerapproximately 35,098,702 million common shares (equivalent to 64% ofthe enlarged Bolero share capital) to Gryphon Gold shareholders.- Bolero's offer would extend to all Gryphon Gold common shares that arecurrently issued and outstanding or may be issued prior to the expiryof the proposed offer, upon conversion, exchange or exercise of anyGryphon Gold securities or other entitlements.- Based on the closing price of Bolero's common shares on January 19th,2010, the implied offer price would represent a premium ofapproximately 25% based on the latest closing price on January 19th,2010 and 25.8% on the 21-day volume weighted average price to the samedate of Gryphon Gold's common shares, respectively.Background:-----------It was Bolero's intention to proceed with a friendly offer. On January 11, 2010, Bolero's President and Chief Executive Officer, R. Bruce Duncan, spoke to John L. Key, Gryphon Gold's President and Chief Executive Officer, indicating that Bolero had a keen interest in pursuing discussions with Gryphon Gold particularly in light of Gryphon Gold's press release announcement of December 29, 2009....