Liberty Silver: Sennen Resources Offer Extended

Liberty Silver Corp. (TSX:LSL) announced that the company is extending its offer deadline to 9 p.m. EST on Monday, September 10, 2012 for all the issued and outstanding common shares of Sennen Resources Ltd.

As quoted in the press release:

Under Liberty Silver’s offer, Sennen shareholders will receive 0.28 of a Liberty Silver common share for each Sennen common share. The exchange ratio, at the time the offer was made, represented an implied price of $0.20 per Sennen share.

The offer represents a premium of 47.3% to the 20-day volume weighted average trading price ended July 13, 2012, being $0.135. This is also higher than the 34.8% average take-over bid premium paid for mining companies listed on the Toronto Stock Exchange and TSX Venture Exchange over the past 12 months. The offer is valued at approximately $13.36 million, an amount that is expected to exceed Sennen’s net cash reserves when the proposed transaction closes.

Geoff Browne, Liberty Silver’s chairman and chief executive officer said

We remain confident that tendering to our offer represents the best value for Sennen shareholders rather than maintaining Sennen’s status quo. Sennen’s board formed a special committee and hired financial and legal advisers more than a month ago to examine our offer. The special committee has yet to come up with a superior – or indeed, any – alternative proposal.

Click here to read the full press release.