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Ecstall Mining Corporation Board of Directors unanimously recommends shareholders reject Mantle Resources hostile takeover bid
Ecstall Mining Corporation Board of Directors unanimously recommends shareholders reject Mantle Resources hostile takeover bid.
About this update from East Africa Metals, Inc.
[{"type":"text","content":"\n\n\n\nTRADING SYMBOL: EAM-TSXVenture 12G EXEMPTION No. 82-2647\n\n\nVANCOUVER, Jan. 8 /CNW/ - The Board of Directors of Ecstall Mining\nCorporation (TSX Venture: EAM) (\"Ecstall\" or the \"Company\") has unanimously\nrecommended that shareholders reject the unsolicited offer from Mantle\nResources Inc. and not tender their shares into the offer.\n\n\nThe Board's recommendation, including a discussion of its reasons for\nrejecting the Mantle Resources hostile bid, is contained within a Directors'\nCircular to be filed today with Canadian securities regulators. A copy of the\nCircular will be available on SEDAR at www.sedar.com. In addition, copies of\nthe Circular are being mailed to the Company's shareholders. Ecstall\nshareholders are urged to read the Directors' Circular in its entirety.\n\n\nIn making its recommendation, the Board considered many factors,\nincluding the written opinion of its financial advisor, Westwind Partners Inc.\nWestwind's opinion states that the consideration under the Mantle bid is\ninadequate, from a financial point of view, to Ecstall shareholders. The full\ntext of the Westwind opinion is included in the Directors' Circular.\n\n\nChairman's Comment\n\n\n\"The Mantle offer is not in the best interests of Ecstall shareholders\nand we are advising shareholders to reject the Mantle offer and not to tender\ntheir shares,\" said Chris Graf, Chairman of the Board of Directors and\nPresident and CEO of Ecstall. \"The offer is financially inadequate and fails\nto appropriately value Ecstall's Akie deposit, its other promising mineral\nproperties in the Kechika Trough sedex zinc district and its many gold\nproperties including the South Okanagan epithermal gold project. Further, the\ntiming of the offer is opportunistic, prejudicial and disadvantageous to\nshareholders, particularly because the bid was launched at a time when\nshareholders have not had an opportunity to review pending information that\nwill assist shareholders in assessing the value of the Ecstall Akie property.\nThat pending information includes a technical report, being prepared by an\nindependent party and in accordance with National Instrument 43-101, that will\nhave a mineral resource estimate and a prefeasibility study. The Board expects\nthis technical report to be issued and filed on SEDAR during the week of\nJanuary 15, 2007.\"\n\...