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Visible Gold Mines files application with Québec Bureau de décision et
de révision
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Cites major irregularities in offer by Zara Resources
ROUYN-NORANDA, QC, Sept. 6, 2013 /CNW Telbec/ - Visible Gold Mines Inc. (TSX-V: VGD) (Frankfurt: 3V4) has filed an application with the Québec Bureau de décision et de
révision seeking a cease-trade order and other sanctions against the
unsolicited offer by Zara Resources Inc. (CNSX: ZIR) to purchase 100% of the outstanding shares of Visible Gold Mines in
exchange for shares of Zara Resources. If a cease-trade order is
issued by the Québec Bureau de décision et de révision, Zara Resources
would not be permitted to issue shares to Visible Gold Mines
shareholders in Québec in payment for their shares.
The application by Visible Gold Mines is based on major irregularities
and deficiencies in the unsolicited offer by Zara Resources. In
particular, Visible Gold Mines has noted the absence of a French
version of Zara Resources' take-over bid circular, which violates a
fundamental rule of Québec securities law and makes the offer illegal.
Visible Gold Mines has also noted the sale by Mr. Danny Wettreich, CEO
and principal shareholder of Zara Resources, of almost 2 million
Visible Gold Mines shares on August 19, 2013, the day on which Zara
Resources first announced its offer. Visible Gold Mines considers the
sale to be in direct contravention of applicable securities laws.
The application by Visible Gold Mines also invokes the failure by Zara
Resources to adequately disclose in its take-over bid circular that
Zara's offer to acquire 100% of the outstanding shares of Visible Gold
Mines is independent of the simultaneous offers made by Zara Resources
for 100% of the shares of two unrelated mining exploration companies,
and is not conditional upon the success of the two other offers.
Visible Gold Mines has requested a hearing before the Québec Bureau de
décision et de révision to consider its application, and will update
its shareholders on a timely basis with respect to developments.
Visible Gold Mines recommends that shareholders defer taking any action
in respect of the unsolicited offer by Zara Resources until
shareholders have received further communication from the Board of
Directors of Visible Gold Mines. As the offer by Zara Resources is open for acceptance until October 28,
2013, there is no need for Visible Gold Mines shareholders to take any
steps in respect of the offer by Zara Resources at this time.
About Visible Gold Mines
Visible Gold Mines Inc. is a dynamic company aggressively searching for
the next important gold deposit in northwestern Québec, an area
consistently ranked as one of the world's best jurisdictions for mining
and exploration.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of the release.
SOURCE: Visible Gold Mines Inc.
Martin Dallaire, President and Chief Executive Officer
Telephone: 819-762-0609, Fax: 819-762-0097
E-mail: mdallaire@visiblegoldmines.com
Website: www.visiblegoldmines.com
Copyright CNW Group 2013