Inter-Citic Minerals Inc. (TSX:ICI) reported rejecting an unsolicited preliminary proposal from a large Chinese mining company to acquire all of the outstanding shares of the company.
As quoted in the press release:
The Proposal was rejected by a Special Committee of the Inter-Citic Board after consultation with its independent financial advisors and legal counsel.
The Proposal, from a company that to the best of Inter-Citic’s knowledge is neither an insider nor shareholder of the Company, included an indicative price of between $1.20 and $1.70 per share for Inter-Citic.
In considering the Proposal, the Special Committee determined that the indicative price significantly undervalues Inter-Citic and its prospects, and is therefore not in the best interests of shareholders.
Inter-Citic Chairman, Mark Frederick said:
“The Dachang gold project is a great exploration success story that, in spite of currently challenging global markets and very recent and unusual trading volumes, will continue to be recognized as a gold asset of very significant value in a market where the demand for gold and quality gold projects has been increasing substantially. With $22 million in the bank, the Company is well funded to further advance and expand one of China’s largest undeveloped gold resources.”