Brazil’s EBX launches $1.47-bn bid for Canada’s Ventana Gold

EBX Group, the Brazilian industrial conglomerate owned by billionaire Eike Batista has launched a C$1.5 billion ($1.47 billion) unsolicited takeover bid for the shares it does not already own in Canada's junior gold miner Ventana Gold Corporation.

The news of the offer sent Ventana shares yesterday soaring by 36 per cent in mid-noon trading in the Toronto Stock Exchange to C$13.65.

Rio de Janeiro-based EBX, which holds about 20-per cent stake in Ventana through its subsidiary 63X Master Fund, yesterday said that it plans to make a formal offer to buy the remaining 80 per cent of Ventana for C$12.63 each, valuing the Vancouver, British Colombia-based gold miner at around C$1.5 billion.

Ventana is a mineral exploration and development company with mineral rights to 4,590 hectares of exploration property in north-eastern Colombia. The company's flagship project is the 4,590 hectares of exploration La Bodega property in the California-Vetas mining district, 400kms northeast of Bogota, Colombia.

The La Bodega project contains multiple high-grade zones of gold, silver and copper minerals and the company estimates that annual production from the property to be around 347,000 gold equivalent ounces.

Ventana said in a statement that its board has commenced the process of engaging advisors to assist it in responding to this bid and will make every effort to maximize value for the benefit of its shareholders.

EBX said that its offer is conditional subject to receiving more than two-thirds of Ventana shares.

"The offer will be fully funded and provides Ventana's shareholders with immediate liquidity and certainty of value regarding Ventana's growth potential in the face of volatile equity markets," EBX said in a statement.