Aquiline Resources (AQI-V) has turned down IMA Exploration‘s (IMR-V) sweetened bid to settle a legal dispute over the Navidad silver-lead property in Chubut province, Argentina.
IMA had offer Aquiline $1 million in cash accompanied by 3.5 million shares and an equal number of share purchase warrants. The notes would be distributed directly to Aquiline shareholders, with the 5-year warrants exercisable at $4 per share.
The offer was set to expire on October 5.
“The rejection of IMA’s offer and the resulting protracted legal case, with no guarantee of success, will deprive Aquiline shareholders of the opportunity represented by IMA’s offer and impose a heavy financial and management cost,” IMA said in a prepared statement.
Earlier this year, IMA offered Aquiline $100,000 for the “nuisance value” of the lawsuit filed in British Columbia. The offer was quickly shot down.
In its suit, Aquiline contends that IMA used confidential regional exploration data supplied by Newmont Mining (NEM-N, NMC-T), the former owner of the Calcatreu property. Newmont acquired Calcatreu through its takeover of Normandy Mining.
IMA is alleged to have used that regional information to stake a 100-sq.-km area surrounding what became the Navidad Hill discovery, some 40 km away, shortly thereafter. IMA ended up not pursuing the Calcatreu project, which Aquiline then purchased from Newmont in early 2003.
IMA maintains that Aquiline has no claim whatsoever and that it is fully prepared to vigorously defend its position.
At last count, Navidad was home to indicated resource totalling 92.8 million tonnes running 101 grams silver and 1.36% lead, for 300.7 million contained ounces of silver and 1.27 million tonnes of lead. Inferred resources stand at 15.2 million tonnes grading 78 grams silver and 0.45% lead.
The resources are contained in the Galena Hill, Connector, Navidad Hill and Calcite Hill deposits, and stretch over 2.3 km of strike along the Navidad trend. The estimate is based on a total of 27,982 metres of drilling in 174 holes.
The trial is slated to begin on October 11.
The news sent shares in IMA down 39, or more than 10%, to $3.41 in early afternoon Venture Exchange trading; Aquiline was off 2 pennies at $1.68.
Be the first to comment on "Aquiline rejects IMA offer"