Rusoro in bid for Gold Reserve

Finance

Publishing Date: 15 Dec 2008 3:18pm GMT
Author: Mining Journal

Rusoro Mining Ltd said it has launched a takeover bid for Gold Reserve Inc. Rusoro is offering Gold Reserve shareholders and equity unit holders 3 Rusoro common shares for each Gold Reserve Class-A common share and each Gold Reserve equity unit.

The offer values Gold Reserve at C$1.08 per Class-A common share and each equity unit, and represents a premium of 140% based on the December 12 closing prices for Rusoro and Gold Reserve on the TSX Venture Exchange and the Toronto Stock Exchange respectively, and a premium of 209% based on the volume-weighted average trading prices for Rusoro and Gold Reserve for the previous 30 trading days on the TSXV and the TSX, respectively.