GoGold Resources Inc. (TSX:GGD) announced December 30 that it will make an offer to buy all of the outstanding common shares of Vancouver-based junior mining company Animas Resources Ltd. (TSX-V:ANI) for $0.15 per share.
Animas shareholders are entitled $.07 per share in cash and 0.0851 of a GoGold common share for each Animas share tendered to the offer.
The offer comes one week after Marlin Gold (TSX-V:MLN), another Vancouver-based junior, offered to purchase Animas' shares for $0.10 a piece.
Animas' board of directors has unanimously supported the GoGold offer and suggests Animas shareholders reject the Marlin deal.
GoGold has also reached "lock up agreements" with a group of shareholders that control nearly 59% Animas' shares. The agreements ensure the group of shareholders will not agree to any other takeover bids.
GoGold intends to formally present the deal to Animas shareholders by January 28, 2014.
Animas owns two properties – the Santa Gertrudis gold project and the Desierto property, both of which are located in northwest Mexico.
The Santa Gertrudis gold project was a producing mine between 1991 and 2000. Animas has been doing exploration work at the mine in the hopes of bringing it back into production.
The 27,000-hectare Desierto property is an undeveloped exploration project.
"For some time now our major shareholders have felt that Animas' shares have been significantly undervalued and we began seeking a group to unlock the value of the Santa Gertrudis Gold Project by putting the mine back into production. After having several groups visit the project, GoGold made the first offer and we began negotiating with them and got a good understanding of their ability to put this mine back into production," said Mark Brown, Animas president and CEO, in a statement.
