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Wednesday, 17th December 2008 (1247 views)

Rusoro Mining has reported that it has launched a takeover bid for Gold Reserve which values the company at C$1.08 (£0.58) each per Class A common share and each equity unit.

The offer represents a premium of 140 per cent on the December 12th closing prices for Rusoro and Gold Reserve on the Toronto Stock Exchange and a 209 per cent premium on the 30-day volume weighted average prices.

Andre Agapov, Rusoro chief executive, commented: ''A business combination between Rusoro and Gold Reserve creates the premier Venezuelan gold company and allows us to use our extensive in-country experience to unlock the inherent value of the Brisas project."

Rusoro Mining has confirmed its commitment to the bid for Gold Reserve in a message to Gold Reserve shareholders and equity unitholders.

Mr Agapov stated that Rusoro "remains open to constructive discussions with the Gold Reserve management team".

Based in Vancouver, Canada, junior gold producer Rusoro owns the Choco 10 and Isidora mines near the town of El Callao in Venezuela.

 

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