May 13, 2009 / 11:26 AM / 9 years ago

Kinbauri Gold signs definitive agreement with Glen Eagle

May 13 (Reuters) - Mineral exploration company Kinbauri Gold Corp KNB.V said it has entered into a definitive agreement with Glen Eagle Resources Inc GER.V related to an investment deal, after it rejected a takeover offer from Orvana Minerals Corp (ORV.TO) earlier this week.

Glen Eagle had on April 17 offered to invest C$32 million in Kinbauri for a 45 percent stake in Kinbauri Espana unit, which holds interests in the El Valle/Carles gold and copper project in northwestern Spain. [ID:nBNG209355]

The subscription agreement also grants Glen Eagle the right to acquire a further 5 percent interest for an additional C$5 million.

In a statement on Tuesday, the company said it will also enter into a shareholders’ agreement with Glen Eagle on closing of the deal.

Under the terms of the agreement, Espana will have a board of directors consisting of five nominees, three to be appointed by Kinbauri and two to be appointed by Glen Eagle.

On Monday, Kinbauri Gold rejected a C$29.3 million takeover offer from Orvana Minerals.

Kinbauri shares closed at 57 Canadian cents, while those of Glen Eagle closed at 15 Canadian cents Tuesday on the Toronto Venture Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Deepak Kannan) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

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