Khan urges rejection of 'prejudicial' ARMZ offer

By Liezel Hill

TORONTO (miningweekly.com) - The board of TSX-listed uranium junior Khan Resources recommends that shareholders reject an unsolicited offer from Russia's Atomredmetzoloto (ARMZ), labelling the bid "highly prejudicial and opportunistic".

The company said it is pursuing alternative transactions that could offer better "strategic value".

ARMZ has offered $0,65 in cash per Khan share, which the Canadian firm's financial advisor has also said is inadequate from a financial point of view.

Khan said on Tuesday that the ARMZ offer also exposes the company to "serious risks", because it comes at a time when Khan is trying to re-register mining and exploration licences in Mongolia for the firm's Dornod uranium project, under a new nuclear energy law in the country.

"ARMZ is seeking to take advantage of Khan and its shareholders at a particularly vulnerable time, and to capitalise on this regulatory uncertainty," said Grant Edey, who chairs Khan's special committee of directors.

"The special committee and Khan management are focused on finding alternative strategic transactions that take into account the interests of all relevant stakeholders and recognize the reality of the current circumstances in Mongolia and the critical value of maintaining a positive working relationship with the Mongolian government," Edey said.

Khan also points out to shareholders that ARMZ has not made a firm offer, but rather included a number of discretionary conditions which could allow it to abandon the offer.

Altogether, major shareholders, directors and officers holding more than 30% of Khan's outstanding shares have indicated that the do not plan to tender their shares to the ARMZ offer, the company said on Tuesday.

Khan holds a 58% interest in Central Asian Uranium Company (CAUC), which holds a mining licence on the Dornod uranium project in Mongolia. ARMZ subsidiary Priargunsky owns 21% of CAUC and Mongolian government-owned MonAtom holds the balance.

Khan also has a 100% interest in an adjacent exploration licence area.

The Dornod project is expected to have a mine life of 15 years, and could produce an average of three-million pounds of the nuclear fuel, at $23,22/lb, according to a feasibility study completed earlier this year.

Edited by: Liezel Hill

Source:www.miningweekly.com
Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic