Officials at Canadian miner Alamos Gold Inc. have announced they will not extend their offer for Aurizon Mines Ltd. and will not take up any tendered Aurizon shares, citing high costs. The British Columbia Securities Commission had previously ordered Aurizon to cease trading a second poison pill. The move was “another improper defensive tactic of the Aurizon board designed to prevent Aurizon shareholders from tendering to the superior offer—the Alamos offer,” said Alamos CEO John McCluskey.
Alamos officials, he added, believe an Alamos and Aurizon share combination would be far more valuable than shares in the heavily indebted entity resulting from Hecla—with 57 million shares—and Aurizon. But through a “unique break fee” Aurizon shareholders have been denied “a tender to Alamos’ superior offer,” said McCluskey. “In pursuing our growth, we will not deviate from fiscal discipline.”
Without debt, a solid cash flow and attractive near-term growth “we remain committed to our strategy and look forward to pursuing new initiatives that will drive value for our shareholders,” said McCluskey. “We see tremendous value within the industry today, and the future of Alamos continues to be very bright.”