Alamos Gold Inc yesterday said it would not hike its C$780 million ($781.1 million) takeover offer for Aurizon Mines Ltd after fellow Canadian miner rejected its unsolicited bid, calling it inadequate and opportunistic.
Early his month, Canadian junior gold miner Alamos, which already owns a 16 per cent stake in Aurizon, launched a C$4.65 per share stock and cash bid, with an eye on the Vancouver, British Columbia-based rival's operational Casa Berardi gold mine.
Aurizon advised shareholders to reject the unsolicited takeover offer, saying the proposal was financially inadequate and opportunistic. ''The offer fails to compensate Aurizon shareholders for the true value of its assets, said George Brack, chairman of the special committee of the Aurizon board.
"It fails to compensate Aurizon shareholders for the true value of our assets. We also believe there is increased geopolitical and development risk associated with Alamos shares," he added.
Aurizon noted that the offer was less than $4.65 per share due to the price of Alamos shares, which have traded lower since it tabled its offer on 14 January.
The miner has adopted a shareholder rights plan, or poison pill, to ward off Alamos.