Citing difficult compliance with regulatory requirements, U.S. Gold (UXG-T, UXG-X) has abandoned its takeover offer for Coral Gold (CGR-T, CGREF-O), but intends to make offers for its other three takeover targets, Nevada Pacific Gold (NPG-V, NVPGF-O), Tone Resources (TNS-V, TONRF-O) and White Knight Resources (WKR-V, WITNF-O).
At the same time, U.S. Gold left the door open to a later bid for Coral.
Last March, U.S. Gold offered 0.35 of a U.S. Gold share for one share of White Knight, 0.23 of a share for one Nevada Pacific, 0.63 of a share for one Coral Gold, and 0.26 of a share for one of Tone Resources, in a bid to consolidated a large land package in the Cortez Trend of northeastern Nevada. In June, following an opinion from the United States Securities and Exchange Commission that the offer had not been properly registered, U.S. Gold withdrew its offer for White Knight and delayed formal offers for the other three companies.
Both White Knight and Nevada Pacific had given qualified support to the bid, although White Knight’s board refused to recommend the offer to shareholders because of the regulatory hitches.
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