Friday, September 12, 2025

Latest

Guyana Goldfields Rejects Gran Colombia’s Superior Offer For Takeover

Guyana Goldfields (TSX: GUY) this evening announced that it has declined the offer by Gran Colombia Gold Corp (TSX: GCM) to perform a three way merger with that of Gold X Corp (TSXV: GLDX). The deal had initially been proposed by Gran Colombia as a means of aggregating several Latin America operators to create an intermediate Latin American gold producer.

Guyana has elected to decline the proposal by that of Gran Colombia, despite it being a superior offer to that from Silvercorp Metals (TSX: SVM). The rational behind declining the superior offer was that the difference between the offers was not enough to sufficiently compensate shareholders for the risk associated with the transaction. Other details cited include that the transaction is complex and and highly conditional in nature, it requires approval from three separate sets of shareholders, and it did not provide short term liquidity to cover the $3.65 million break fee associated with the Silvercorp transaction.

The unsolicited offer for acquisition made by Gran Colombia was submitted on May 11, just two days ago. The proposal included an exchange ratio of 0.142 Gran Colombia shares for each Guyana share held, the equivalent of $0.90 per share. Comparatively, the current offer from Silvercorp consists of $0.60 in cash per share, or 0.1195 of a Silvercorp share which as of Friday equated to an equivalent $0.69 a share.

Gran Colombia and Gold X Corp have yet to respond to the declined offer. It should be noted that as of Monday, Gran Colombia currently holds a 5% stake in Guyana Goldfields.


Information for this briefing was found via Sedar, Silvercorp Metals, Gran Colombia Gold, Gold X Corp and Guyana Goldfields. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Augusta Gold Begins 110,000 Metre Drill Program In Nevada

Augusta Gold (CSE: G) has commenced drilling under its previously announced 110,000 metre exploration program...

Thursday, February 11, 2021, 08:43:12 AM

Burkina Faso Is Cracking Down On Gold Exports

Burkina Faso’s military leadership has announced an immediate halt on the issuance of export permits...

Friday, February 23, 2024, 10:38:00 AM

Bank Of America Lowers Gold Price Target To $2000? – The Daily Dive feat John-Mark Staude

Returning to the Daily Dive today is that of John-Mark Staude of Riverside Resources (TSXV:...

Wednesday, December 16, 2020, 01:00:00 PM

Restarting Madsen: West Red Lake’s 2025 Production Plan with Shane Williams

In this interview at the Precious Metals Summit 2024, Shane Williams, President & CEO of...

Thursday, September 12, 2024, 04:15:00 PM

GMV Minerals Mobilizes For 3,000 Metre Drill Program At Mexican Hat

GMV Minerals (TSXV: GMV) this morning issued a brief release. Within, the company indicated that...

Thursday, June 24, 2021, 09:13:31 AM