It’s back to court for Gold Fields ( GFI-N, GOF-L) and Bolivar Gold (BGC-T) as relentless Scion Capital will appeal the recent court approval of Gold Fields acquisition of Toronto-based Bolivar.
California-based Scion will make its case in Vancouver on Monday, Feb. 27, one week after the Supreme Court of Yukon ruled in favour of the US$360 million deal. Scion is a minority shareholder in Bolivar with roughly 19% of the gold company’s shares.
Scion’s chief legal officer, Steve Druskin, says the appeal is being made even though the presiding judge in the Yukon court has not yet released his reasons for his decision
“We’re taking the appeal action to argue that the judge made a mistake by the fact that he made the decision he did,” Druskin says.
Druskin says the court will likely give its reasons for the decision before the hearing on Monday.
Shortly after the deal between Gold Fields and Bolivar was announced in late November of 2005, Scion argued the offer under-valued Bolivar’s asset in Venezuela, over-played the political risk in Venezuela and was too favourable to Bolivar management. It’s appeal will largely hinge upon those points.
Shareholders approved the deal on Jan. 12 in Toronto. The current court proceedings are the final stage of approval for the offer.
Gold Fields is one of the world’s largest unhedged gold producers, with annual gold production of approximately 4.2 million oz from mines in South Africa, Ghana and Australia as well as a developing mine at Cerro Corona in Peru. The Company has reserves of 64.8 million ounces and mineral resources of 174.5 million ounces.
Bolivar Gold Corp. is a gold exploration and development company. At its 95%-owned Choco 10 property in Venezuela, drilling has confirmed near-surface proven and probable ore reserves of 1.3 million oz. The 5,400 tonne per day Choco 10 operation commenced commercial production in August 2005.
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