Business
Visible Gold Mines Recommends that Shareholders Reject Unsolicited "Mini-Tender Offer" by Zara Resources
Zara offer is opportunistic and under-values Visible Gold Mines Zara has no signifi...
About this update from Visible Gold Mines Inc.
[{"type":"text","content":"\n\n\nZara offer is opportunistic and under-values Visible Gold Mines\n\n\nZara has no significant assets and limited cash, and its stock is\n illiquid\n\n\nZara has no track record of mine development\n\n\nROUYN-NORANDA, QC, June 25, 2013 /CNW Telbec/ - Visible Gold Mines Inc. (TSXV: VGD) (Frankfurt: 3V4) recommends that shareholders NOT tender their shares in response to the unsolicited mini-tender offer by\n Zara Resources Inc. (CNSX: ZRI).\n\n\nThe Board of Directors of Visible Gold Mines believes that the Zara\n offer fails to provide full value for Visible Gold Mines' assets and\n shares and is an attempt by Zara to acquire de facto control of Visible Gold Mines without offering adequate consideration\n to Visible Gold Mines shareholders.\n\n\n\"We believe that Zara's offer is inadequate, opportunistic, coercive and\n fails to recognize the strategic value of Visible Gold Mines' assets\n and our future value-creation potential,\" said Martin Dallaire,\n President, Chief Executive Officer and a director of Visible Gold\n Mines. Mr. Dallaire added, \"The Board of Directors fails to see how the\n Zara offer serves the interests of Visible Gold Mines shareholders.\n Zara is in financial difficulty, has no track record of mine\n development and its stock is illiquid. We see no reason why Visible\n Gold Mines shareholders should give control of our company to Zara.\"\n\n\nReasons why shareholders should NOT tender their shares in response to\n Zara's mini-tender offer\n\n\nThe following are reasons why Visible Gold Mines shareholders should NOT\n tender their shares in response to Zara's mini-tender offer:\n\n\nFinancial Weakness\n\n\nZara has no significant assets. According to Zara's interim financial\n statements for the period ended January 31, 2013, it had only $99,011\n in cash and $983 in tax receivable. In comparison, Visible Gold Mines\n had, as of that same date, $14 million in assets, including $524,375 in\n cash and cash equivalents, $500,000 in marketable securities, $148,548\n in goods and services tax receivable, $913,925 in tax credits and\n credits on duties receivable and $23,340 in prepaid expenses.\n\n\nVisible Gold Mines is in a much better financial position than Zara.\n Shareholders who accept the offer will receive shares of a company\n (Zara) with virtually no cash.\n\n\nThe two most recent press re...