Alamos Gold won't extend offer for Aurizon

theflyonthewall.com

Alamos Gold announced that it will not extend its offer for Aurizon Mines (AZK), which will expire at 5 p.m. on March 19. Due to the break fee that would be payable to Hecla (HL) the conditions to the Offer have not been met. As a result, Alamos will not take up any Aurizon shares that are tendered to the Offer. The British Columbia Securities Commission ordered on March 18 that the second Aurizon poison pill be cease traded immediately. "We are pleased that the BC Securities Commission has removed the second poison pill, which was another improper defensive tactic of the Aurizon board designed to prevent Aurizon shareholders from tendering to the superior offer - the Alamos offer," said John A. McCluskey, President and Chief Executive Officer of Alamos. Despite the apparent premium implied by Hecla's offer, the 57 million Hecla shares to be issued by Hecla to Aurizon shareholders as consideration in fact makes the Hecla offer inferior to the Alamos offer. Alamos firmly believes that shares in the company resulting from the combination of Alamos and Aurizon would be far more valuable than shares in the heavily indebted company resulting from the combination of Hecla and Aurizon.

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