Aurizon asks investors to hold off vote on Alamos bid

Tue Jan 15, 2013 8:06am EST
 

TORONTO (Reuters) - Aurizon Mines Ltd ARZ.TO advised its shareholders on Tuesday to hold off on taking any action on an unsolicited takeover proposal from rival gold miner Alamos Gold Inc (AGI.TO: Quote) while it reviews the bid.

Vancouver, British Columbia-based Aurizon, which operates the Casa Berardi gold mine in Quebec, said it was evaluating the C$780 million ($791.4 million) offer with its financial and legal advisors. It also plans to appoint a special committee of its board members to review the proposal.

Aurizon advised shareholders defer from taking any action on the Alamos offer until its board makes a recommendation.

Toronto-based Alamos said on Monday that it was making an offer directly to Aurizon shareholders, as past attempts to clinch a friendly deal had failed.

In documents filed with Canadian regulators, Alamos outlined details of three separate attempts made between 2008 and 2011 to reach a friendly deal, all of which Aurizon's board rebuffed.

Alamos, which owns and operates the Mulatos mine in Mexico, has offered C$4.65 a share for Aurizon, a 36 percent premium over the stock's closing price of C$3.41 on Friday. The shares rose to C$4.55 on Monday.

If Alamos' proposal succeeds, the deal would leave the company with two producing gold mines in jurisdictions considered politically stable and create a combined entity with a market capitalization of about C$2.6 billion.

($1 = 0.9857 Canadian dollars)

(Reporting by Euan Rocha; Editing by Lisa Von Ahn)