World number-four gold miner Gold Fields on Thursday received sufficient backing from the security holders of Toronto-listed Bolivar Gold to take control of the company, Gold Fields spokesperson Willie Jacobsz said.
Bolivar shareholders holding 76% of the company’s shares voted in favour of Gold Fields’ offer of Can$3,20 per Bolivar Gold share, he added.
Bolivar warrant holders holding 82% of the group’s warrants voted in favour of the offer, Jacobsz said.
United States fund manager Scion Capital, which held 19,14% of Bolivar Gold’s shares, had been calling for Gold Fields to increase its offer and called the group’s revised offer, made earlier in the week, “unacceptable” and rejected it.
Bolivar Gold’s only operating asset is the Choco 10 gold mine in Venezuela.
The next step in the plan of arrangement process is for the Supreme Court of the Yukon territory of Canada to consider the transaction, with the hearing scheduled for January 19, Gold Fields said.
If court approval is obtained, the transaction is expected to close by the end of January, subject to the completion or waiver of any outstanding contractual conditions, the company added.
Commenting on the successful outcome of the meeting, John Munro, head of corporate development at Gold Fields, said: “We are delighted with the outcome of today’s vote and are confident that Gold Fields’ ownership of the Choco 10 mine, and advanced plans for exploring the highly prospective surrounding area, will contribute positively to the development of the mining industry in Venezuela.”
Gold Fields CEO Ian Cockerill added: “Today is another successful milestone in implementing our growth strategy. With Choco 10 as a strong operational platform, we are well placed to grow our activities in what we believe to be a highly prospective gold region, bringing us closer to our aim of achieving an additional 1,5-million ounces of international production by 2009.” — I-Net Bridge