Zara Resources makes unsolicited bid for Visible Gold Mines

Canadian gold junior, Visible Gold Mines (CVE:VGD), says the $383,000 unsolicited bid by Zara Resources (CNSX:ZRI) is “high opportunistic”.

Zara announced today that is attempting to acquire 19.9% of the company at $0.03375 per share.

Zara says that it will “. . . press for board and management changes, calling for a meeting of shareholders, if necessary, to replace the current Visible board with Zara’s nominees.”

Visible Gold, which is currently halted on the Canadian Venture Exchange, is pushing back against the offer and advises that its shareholders take no action regarding the offer.

“The Board of Directors of Visible Gold Mines believes that the purpose of the partial offer is to allow Zara to acquire a substantial position in Visible Gold Mines so that Zara may exercise de facto control or significant influence over Visible Gold Mines, without incurring the cost of purchasing all the shares of Visible Gold Mines,” said Visible Gold Mines in a news release.

Visible Gold operates in the Abitibi greenstone belt in northwestern Quebec.

Zara Resources is developing its Forge Lake gold project and its Pigeon River nickel-copper project in Ontario, Canada.

Creative Commons image by Bradley Gordon