Gold Reserve rejects takeover offer from Rusoro Mining

2 hours ago

SPOKANE, Wash. — Gold Reserve Inc. (TSX:GRZ ) says it has rejected an unsolicited takeover offer from Rusoro Mining Ltd. (TSXV:RML).

Rusoro offered two shares for each share of Gold Reserve - a proposal that the Spoke, Wash.-based company's board said was inadequate and not in the best interests of shareholders.

"This highly conditional expression of interest attributed a $90 million value to Gold Reserve's equity," said Doug Belanger, president of Gold Reserve.

"The expression of interest did not take into account Gold Reserve's current financial position, and gave little value for our company's proven and probable reserves of 10.2 million ounces of gold and 1.4 billion pounds of copper."

Gold Reserve said, however, that it is "always willing" to discuss any potential opportunities to increase shareholder value.

Gold Reserve holds the rights to the Brisas gold-copper project and the Choco 5 gold exploration property in Bolivar State, Venezuela.

Rusoro is a Vancouver-based junior miner working in Venezuela.

On the TSX, shares in Gold Reserve traded at $1.55, up seven cents or almost five per cent, while Rusoro was off a penny, 1.25 per cent, at 79 cents.