Business
Visible Gold Mines seeks cease-trade order against unsolicited offer by Zara Resources
Visible Gold Mines files application with Québec Bureau de décision et de r...
About this update from Visible Gold Mines Inc.
[{"type":"text","content":"\n\n\n\n\n\nVisible Gold Mines files application with Québec Bureau de décision et\n de révision\n\n\nCites major irregularities in offer by Zara Resources\n\n\nROUYN-NORANDA, QC, Sept. 6, 2013 /CNW Telbec/ - Visible Gold Mines Inc. (TSX-V: VGD) (Frankfurt: 3V4) has filed an application with the Québec Bureau de décision et de\n révision seeking a cease-trade order and other sanctions 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.  If a cease-trade order is\n issued by the Québec Bureau de décision et de révision, Zara Resources\n would not be permitted to issue shares to Visible Gold Mines\n shareholders in Québec in payment for their shares.\n\n\nThe application by Visible Gold Mines is based on major irregularities\n and deficiencies in the unsolicited offer by Zara Resources.  In\n particular, Visible Gold Mines has noted the absence of a French\n version of Zara Resources' take-over bid circular, which violates a\n fundamental rule of Québec securities law and makes the offer illegal. \n Visible Gold Mines has also noted the sale by Mr. Danny Wettreich, CEO\n and principal shareholder of Zara Resources, of almost 2 million\n Visible Gold Mines shares on August 19, 2013, the day on which Zara\n Resources first announced its offer.  Visible Gold Mines considers the\n sale to be in direct contravention of applicable securities laws.\n\n\nThe application by Visible Gold Mines also invokes the failure by Zara\n Resources to adequately disclose in its take-over bid circular that\n Zara's offer to acquire 100% of the outstanding shares of Visible Gold\n Mines is independent of the simultaneous offers made by Zara Resources\n for 100% of the shares of two unrelated mining exploration companies,\n and is not conditional upon the success of the two other offers.\n\n\nVisible Gold Mines has requested a hearing before the Québec Bureau de\n décision et de révision to consider its application, and will update\n its shareholders on a timely basis with respect to developments.\n\n\nVisible Gold Mines recommends that shareholders defer taking any action\n in respect of the unsolicited offer by Zara Resour...