Bresea merger on hold

A takeover offer from MacDonald Mines Exploration (MMP.A-A) that would have seen a merger with moribund Bresea Resources has been scotched by Bresea’s receiver, Pricewaterhouse Coopers.

MacDonald offered Bresea shareholders an exchange of shares at a ratio that would have been determined by the Alberta Court of Queen’s Bench, which has jurisdiction over Bresea’s current protection from claims arising from the Bre-X Minerals fraud. Pricewaterhouse indicated in a meeting with MacDonald and Bresea officers (including one-time Bre-X manager Thomas Devlin) that it was not prepared to approve a merger offer.

Pricewaterhouse was to receive further interim instructions from the court on Sept. 25, but the court has postponed the hearing to a date that has not been set.

A similar merger offer from MacDonald Mines affiliate MacDonald Oil Exploration is also on hold, pending further instructions to Pricewaterhouse from the court.