Canacord Morning coffee comments on yesterdays offer by Rusco on Gold Reserve; the even reference Crystallex and whether or not they may get swallowed up by another. As you will read Rusco offer was an extremely low bid offer that was rediculus when you consider the assest on the books not including the resource. And for the record I would say the KRY is not opposed to any kind of an offer provided it is more in line with current asset valuations and not a low ball bid like just experieced with Rusco.
Gold Reserve* (GRZ : TSX : $1.58), Net Change: 0.10, % Change: 6.76%, Volume: 126,768
Rusoro Mining* (RML : TSX-V : $0.80), Net Change: 0.00, % Change: 0.00%, Volume: 40,000
Getting on Hugo’s good side.
Gold Reserve has received an unsolicited non-binding expression of interest from Rusoro to complete a 100% business combination by issuing two shares of Rusoro for each share of Gold Reserve. Gold Reserve says the expression of interest is inadequate and not in the best interests of its shareholders. Specifically, Gold Reserve says Rusoro’s expression of interest did not take into account the company’s current financial position, and gave little value to the company’s proven and probable reserves of 10.2 million oz of gold and 1.4 billion lbs of copper, the mobile CAT equipment, the equipment currently being manufactured, the extensive “intangibles” attached to the Brisas Project and the value of the Choco 5 exploration property. Would Rusoro be better at progressing Gold Reserve’s assets? On July 10, Rusoro was selected as the partner of choice by the Venezuelan Government for gold mining opportunities in Venezuela. So what does this mean for Crystallex (KRY), whose Las Cristinas project is contiguous with Gold Reserve’s Brisas project? Might Crystallex eventually get swallowed up by someone with better Hugo Chavez/government relations?
