How does MAG s history with Fresnillo relate to OK In 2008, Fresnillo, which owns 56% of the Juanicipio project, tried a low-balled hostile takeover offer of MAG for US$4.54 per share without any success. During that time, MAG filed a formal request for arbitration on the grounds that Fresnillo attempted to acquire control of MAG on a hostile basis, in breach of standstill provisions contained in the shareholders agreement governing the Juanicipio joint venture.
Two years later, in 2011, the arbitration ruling was issued. And MAG had not only won, but ended up with a much easier path to success.
The arbitration ruling stipulated that any deal would need to be friendly, any offer would need to be cash. Fresnillo must move the project forward with MAG in a reasonable time frame - meaning Fresnillo cannot hold back on moving the project forward to suppress MAG's progress. As a matter of fact, exploration budgets have already increased this year.
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I know the OK / PAA deal forbids any hostile takeover however the Mag storyline pertaining to the courts ruling that "Fresnillo must move the project forward with MAG in a reasonable time frame" seems to apply.