Business
Gold Reserve Sends Letter to Shareholders
Urges Shareholders NOT to Tender Their Shares into Rusoro's Inadequate Offer SPOKANE, WA, Jan. 28...
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nUrges Shareholders NOT to Tender Their Shares into Rusoro's Inadequate\nOffer\n\n\nSPOKANE, WA, Jan. 28 /CNW/ - Gold Reserve Inc. (NYSE Alternext: GRZ)\n(TSX: GRZ) today sent the following letter to shareholders urging shareholders\nnot to tender their shares into Rusoro Mining Ltd.'s (TSX-V: RML) ("Rusoro")\nunsolicited offer of December 15, 2008 (the "Offer") to acquire all of the\noutstanding shares and equity units of Gold Reserve in consideration for three\nshares of Rusoro for each Gold Reserve share tendered under the Offer.\n\n\nThe full text of the letter follows:\n\n\nJanuary 28, 2009\n\n\nDear Fellow Shareholder:\n\n\nGold Reserve's Board of Directors has unanimously rejected Rusoro Mining\nLtd.'s ("Rusoro") unsolicited offer of December 15, 2008 (the "Offer") to\nacquire Gold Reserve. Your Board is committed to ensuring that all\nshareholders receive full value for their investment and believes that:\n\n\n- The Rusoro Offer does not represent a premium as it does not provide\n shareholders adequate consideration for the fair value of Gold\n Reserve's assets and their relative contribution to the proposed\n combined company.\n- Rusoro's weak financial position would expose Gold Reserve\n shareholders to increased risk.\n- Rusoro lacks the operational expertise necessary to maintain, much\n less enhance, the value of the combined company.\n\n\nOn January 19, 2009, after more than 30 days of making its case to Gold\nReserve shareholders, Rusoro publicly admitted that less than 3% of Gold\nReserve's outstanding shares had been tendered into its Offer. We believe this\nsends a clear message to Rusoro - the Offer is opportunistic, financially\ninadequate and significantly undervalues your company. Despite the extremely\nlow tender, Rusoro announced that it had extended its bid expiry date to\nFebruary 18, 2009. We are writing to further highlight the deficiencies of\nRusoro's Offer and to urge you again to REJECT the Offer and NOT TENDER your\nshares.\n\n\nRUSORO'S OFFER UNDERVALUES GOLD RESERVE AND DOES NOT REPRESENT A PREMIUM\n\n\nRusoro is attempting to acquire Gold Reserve's significant assets,\nincluding our world-class Brisas Project and our significant cash holdings,\nwithout paying you a premium for the underlying value of your shares. Gold\nReserve's implied value pe...