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Thursday, 28th August 2008 (841 views)

Canadian company Gold Reserve have stated their reasons for turning down a takeover offer from Rusoro Mining.

The firm said its board of directors had unanimously decreed that the amount offered was not enough.

President Doug Belanger commented that the offer "attributed a $90 million (£49 million) value to Gold Reserve' s equity, which the board determined was inadequate and not in the best interests of shareholders".

He claimed that the failed deal "gave little value for the company's proven and probable reserves" which includes 10.2 million ounces of gold.

However, he stated that they are always ready to discuss potential opportunities.

Gold Reserve currently owns the rights to the Choco 5 and Brisas projects in Venezuela.

Rusoro has completed the acquisition of two mines in the South American country in the past year and has an estimated production target of around 150,000 ounces of gold in 2008.

 

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