Union files complaint against Orla Mining, alleging violation of worker rights in Mexico
The complaint is only the second of its kind made from Canada using CUSMA’s RRM process since the trade deal came into force in 2020.
Asante Gold (CSE: ASE) has turned down a takeover proposal by Fujairah Holding LLC, a global investment company based in UAE that owns an 11.43% stake in the West Africa-focused miner.
On Thursday, Asante confirmed it has received an unsolicited, non-binding expression of interest from Fujairah to acquire all remaining outstanding common shares it does not own at a price of C$2.20 per share. At market close, the stock was trading at C$1.51 a share.
Following a review of the proposal, the board of directors has determined that it is “not in the best interests of the company or its shareholders,” Asante said in a news release.
Specifically, the board said that the takeover interest is “highly conditional” and “fails to address Asante’s near-term financing requirements.”
Amongst the conditions listed, the company is required to cease existing discussions and negotiations with all parties other than Fujairah in respect of any debt or equity financing of any kind. According to Asante’s statement, this was an “unacceptable condition that would have required the company to cease various alternatives that it has been advancing to satisfy its near-term financing requirements.”
Other conditions include the completion of satisfactory due diligence during a lengthy exclusivity period, negotiation of a definitive agreement, and receipt of all required regulatory and shareholder approvals.
As a result, the board at Asante has concluded that it has “no indication as to Fujairah’s current intentions, including whether it intends to submit an additional proposal or otherwise attempt to acquire the company’s shares.”
It added that “the company does not undertake any obligation to provide any updates with respect to the non-binding expression of interest or any other proposals, except as required under applicable law.”
Asante currently operates the Bibiani and Chirano gold mines in Ghana with combined forecast production of approximately 400,000 ounces of gold for 2023. It is also conducting technical studies at its Kubi gold project for early production.
Shares of Asante Gold surged 23.8% to C$1.87 apiece by 12:05 p.m. EDT Friday following the announcement of Fujairah’s expression of interest. The company’s market capitalization stands at C$708.1 million ($523 million).
