Business
Visible Gold Mines Inc. responds to announcement of unsolicited partial offer by Zara Resources Inc.
ROUYN-NORANDA, QC, June 10, 2013 /CNW Telbec/ - Visible Gold Mines Inc. (TSXV: VGD) (Fra...
About this update from Visible Gold Mines Inc.
[{"type":"text","content":"\n\n\nROUYN-NORANDA, QC, June 10, 2013 /CNW Telbec/ - Visible Gold Mines Inc. (TSXV: VGD) (Frankfurt: 3V4) confirms that it has received a copy of a press release dated June 10,\n 2013 by Zara Resources Inc. (CNSX: ZIR) in which Zara announces its\n unsolicited partial offer to purchase up to 19.9% of Visible Gold\n Mines' outstanding common shares.\n\n\nOther than the correspondence by which it received the copy of the press\n release, Visible Gold Mines has not had any contact with Zara with\n respect to this unsolicited offer and has no prior knowledge thereof.\n\n\nThe Board of Directors of Visible Gold Mines believes that the purpose\n of the partial offer is to allow Zara to acquire a substantial position\n in Visible Gold Mines so that Zara may exercise de facto control or\n significant influence over Visible Gold Mines, without incurring the\n cost of purchasing all the shares of Visible Gold Mines.\n\n\nSpeaking on behalf of Visible Gold Mines' Board of Directors, Martin\n Dallaire, President and Chief Executive Officer of Visible Gold Mines,\n stated: \"We believe the unsolicited partial offer announced by Zara is\n highly opportunistic, coercitive and significantly undervalues Visible\n Gold Mines' assets and future value-creation potential.\"\n\n\nThe Board of Directors of Visible Gold Mines points out to the Visible\n Gold Mines shareholders the following aspects of the coercive,\n opportunistic partial offer by Zara:\n\n\nPurchases up to 19.9% are not \"take-over bids\" under applicable Canadian\n securities legislation, and, accordingly, the Zara offer is\n intentionally structure to insure that the Visible shareholders are not\n afforded the protection of the rules applicable to take-over bids;\n\n\nVisible Gold Mines shareholders who deposit their shares to Zara's offer\n are not entitled to withdraw them, which is a basic fundamental\n protection afforded to shareholders under applicable Canadian\n securities legislation;\n\n\nSince the offer is not conducted under applicable Canadian take-over bid\n rules and that no prospectus has been prepared in connection with the\n shares of Zara offered to Visible Gold Mines shareholders, the Zara\n shares will not be freely tradeable and will subject to statutory\n resale restrictions under applicable Canadian securities legislation.\n\n\nVisible Gold Mines advises its ...