Malartic bid for Gold Texas fails

Malartic has slightly under 20% of Gold Texas’ issued stock and Richard Williams, Malartic’s corporate secretary, would not rule out any future purchases; but he declined to elaborate on the company’s plans, if any, at this time.

After reaching 20%, Malartic would have to declare its position to meet existing regulatory requirements in British Columbia and Ontario.

“We like the properties and prospects for the company and that’s why we are in there,” said Williams.

Crown Resources (VSE), with about 57% of Gold Texas’ issued capital, is now the largest corporate shareholder and it hopes to acquire more, Crown President Paul Jones told The Northern Miner.

Jones noted that Crown’s tender offer closed Feb 7 “but we were not allowed by the British Columbia Securities Commission to start taking up shares until the third of March because of protests by Malartic.”

By the end of March, Crown had 52.4% of Gold Texas’ outstanding shares “in hand and tendered” and he emphasized they were still “taking up and paying for shares as they are transmitted to us. We have had tendered about 62.5% of the total current outstanding shares.”

Jones said they “would like to bring in the balance of those shares,” and he confirmed at some future date they would also consider a merger.

“We had a straight merger approved by shareholders but Malartic got in there and blocked it. And we can’t do anything until we have this thing wrapped up,” he said.

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