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Visible Gold Mines Obtains Cease-Trade Order against Unsolicited Offer by Zara Resources Inc.
ROUYN-NORANDA, QC , Sept. 16, 2013 /CNW Telbec/ - Visible Gold Mines Inc. (TSXV: VGD) (...
About this update from Visible Gold Mines Inc.
[{"type":"text","content":"\n\n\nROUYN-NORANDA, QC, Sept. 16, 2013 /CNW Telbec/ - Visible Gold Mines Inc. (TSXV: VGD) (Frankfurt: 3V4) is pleased to announce that following a hearing held on Wednesday,\n September 11, 2013, the Québec Bureau de décision et de révision issued\n on Friday, September 13, 2013, a cease-trade order against the\n unsolicited offer by Zara Resources Inc. (CNSX: ZIR) to purchase 100% of the outstanding shares of Visible Gold Mines in\n exchange for shares of Zara Resources.\n\n\nThe Bureau's decision was in response to an application filed on\n September 6, 2013 by Visible Gold Mines and the two other companies\n subject to the offer, which cited major irregularities and deficiencies\n in the unsolicited offer by Zara Resources.\n\n\nAs a result of the cease-trade order, Zara cannot take-up any Visible\n Gold Mines shares that may have been tendered in response to Zara's\n offer, nor issue any Zara shares in payment for the tendered shares.\n\n\nPierre Vézina, Chair of the Special Committee of the Visible Gold Mines\n Board of Directors said, \"We are very gratified that the Bureau issued\n a cease-trade order against Zara's illegal offer. Protection of our\n shareholders is a fundamental obligation of the Board of Directors of\n Visible Gold Mines. We believed it was necessary for Visible Gold Mines\n to bring this matter before the Bureau in order to ensure that Zara's\n offer complies with Québec law.\"\n\n\nThe Bureau specifically noted that: (i) the Zara bid did not comply in\n important respects with applicable securities laws, (ii) the Zara\n circular was incomplete, and (iii) the Zara circular does not permit\n the shareholders of Visible Gold Mines to make an enlightened decision\n in determining how to respond to Zara's offer.\n\n\nThe Bureau also ordered that Zara and its agents stop from soliciting,\n or communicating with, in any manner whatsoever, the shareholders of\n Visible Gold Mines in connection with Zara's offer, until such time as\n Zara has translated its bid documents into French, amended and\n corrected its bid documents, and staff of the Autorité des marchés\n financiers is satisfied with the amended and corrected disclosure.\n\n\nA copy of the Bureau's decision will be available on Visible Gold Mines'\n website.\n\n\nAbout Visible Gold Min...