Rio Alto Mining Ltd. (TSX:RIO,NYSE:RIOM) and Sulliden Gold Corp. Ltd. (TSX:SUE,OTCQX:SDDDF) announced that Institutional Shareholder Services Inc. and Glass Lewis & Co. have both recommended that the companies’ shareholders support their plan of arrangement.
As quoted in the press release:
While endorsing the Arrangement, ISS noted that a vote for the Arrangement is warranted based on the ‘reasonable strategic rational and favorable market reaction’. Glass Lewis called the transaction ‘compelling for Rio Alto investors and for Sulliden investors.’ In coming to that conclusion, Glass Lewis commented on the strategic rationale for the transaction, and in particular, that the primary mineral properties of Rio Alto and Sulliden, being only 30 kilometers apart, offers ‘clear regional familiarity’ and ‘leaves clear opportunities for cost synergies going forward’. Glass Lewis also noted that the combined market capitalization of the two companies ‘should improve liquidity and market visibility, potentially improving the merged entity’s access to capital as it seeks to further develop Sulliden’s existing Shahuindo Project and other more speculative, as-yet-undeveloped portions of each firm’s property portfolio’. In addition, both ISS and Glass Lewis have recommended to Sulliden shareholders that they vote for the continuance of Sulliden from Quebec to Ontario. As noted by Glass Lewis, the differences between the Ontario and Quebec jurisdictions are primarily technical in nature and will not alter the rights of Sulliden shareholders.