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TABLE OF CONTENTS Jan 20 - 26, 2014 Volume 99 Number 49 - 0 comments

GoGold ups offer, bids for all of Animas

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2014-01-15

GoGold Resources (TSX: GGD; TSXV: GGD) has upped the ante for Animas Resources (TSXV: ANI) by intending to make a friendly bid to buy the Vancouver-based firm, and not just its Santa Gertrudis gold project in Mexico, beating Marlin Gold Mining’s (TSXV: MLN; US-OTC: MLNGF) offer.

Halifax-based GoGold plans to provide Animas’ shareholders 7¢ in cash and 0.0851 of its share for each Animas share held. This implies a 15¢ value to each Animas share, or an 87.5% premium, based on both companies’ closing prices on Dec. 24, 2013. GoGold also aims to acquire all of Animas’ warrants by offering one GoGold share for each 94¢ of in-the-money value of the Animas warrants.

This proposal replaces GoGold’s earlier offer to buy Animas’ subsidiaries that held the Santa Gertrudis project. Notably, it allows GoGold to own 100% of the property while eliminating the royalties it would have had to pay under the previous project-purchase agreement, GoGold’s CEO Terry Coughlan explains in a statement.

As part of the deal, GoGold would receive Animas’ 270 sq. km Desierto exploration project, also in Mexico’s Sonora state. 

For Animas shareholders, the bid provides “significant and immediate value for their shares,” Coughlan adds. Moreover, Animas’ shareholders could participate in developing the Santa Gertrudis project and the upside of GoGold’s Parral silver–gold project, expected to start production in early 2014.

GoGold has entered lock-up agreements with Animas shareholders holding 42 million shares, or 58.7% of the company.

In a separate release, Animas’ CEO Mark Brown said he’s aware of the lock-up agreements and noted his board unanimously agreed to support the takeover, urging shareholders to dismiss the inferior 10¢-per-share offer that Marlin Gold announced on Dec. 23.

GoGold plans to mail the offer and takeover bid circular to Animas shareholders by Jan. 28, 2014, and has deposited $1 million in escrow. This amount will be paid to Animas if the offer isn’t mailed in time and under other circumstances.

The deal requires approval from at least two-thirds of Animas’ shareholders.  



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Photos

Core samples on display at Animas Resources' Santa Gertrudis gold project in Sonora, Mexico. Credit: Animas Resources
Core samples on display at Animas Resources' Santa Gert...



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