Visible Gold Mines (TSX: V.VGD, Stock Forum) Monday said it has become aware of a press release dated June 10, 2013, from Zara Resources (C. ZIR), in which Zara announced its unsolicited partial offer to purchase up to 19.9% of Visible Gold Mines' outstanding common shares.
Martin Dallaire, President and Chief Executive Officer of Visible Gold Mines, called the unsolicited partial offer announced by Zara as "highly opportunistic, coercitive and significantly undervalues Visible Gold Mines' assets and future value-creation potential."
Zara’s offer is at a price of $0.03375 per share to be satisfied by the issuance of Zara shares, at a rate of 0.28125 shares of Zara for each tendered share of Visible.
Danny Wettreich, Zara’s CEO, currently owns 5% of the shares of Visible.
Zara contends that the current Board of Visible Gold owns only 1.6% of Visible and in the last three years has been paid $769,585 in fees, saying it is “out of ideas and is dead in the water.”