Major Quebec gold producer Cambior Inc. (TSE) has announced a takeover bid for all of the outstanding shares of Nova-Cogesco Resources (TSE).
Cambior says it will pay $1.80 per share on the condition the offer is accepted by holders representing at least 90% of all Nova-Cogesco shares.
The offer is a follow-up to an earlier takeover bid by Cambior for between 30% and 60% of Nova- Cogesco’s shares, at $1.50 per share. That offer sparked an announcement by Nova-Cogesco and its major shareholder, MSV Resources (ME), that the two juniors were considering merging. MSV has a 22.1% interest in Nova-Cogesco.
Cambior says it has entered into a “lock-up agreement” with MSV whereby the latter will sell its shareholding in Nova-Cogesco to Cambior.
In addition to having a 3.9% interest in Nova-Cogesco, Cambior acts as the junior’s partner (along with Noranda Inc.) in the promising Silidor gold project in the Rouyn- Noranda, Que., area.
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