Corona offer expires March 7 for Dickenson, Kam-Kotia shares

“I don’t think it is good enough,” White, a director of Dickenson and a large shareholder, said.

The B shares of Dickenson Mines continued to trade above the $7.15 price offered by Corona in its takeover bid for the former and a Dickenson-associated company, Kam-Kotia Mines (TSE).

Dickenson’s B shares jumped $1 the day following the announcement by Corona, closing at $7.38, and have since climbed past the $8 mark. Speculation continues that a second bidder is preparing its own takeover offer.

Shareholders of Dickenson and Kam-Kotia have been given until March 7 to respond to the Corona offer.

Managements of Dickenson and Kam-Kotia have so far responded to the Corona offers in a business- like manner. In a recent release, the companies compliment Corona “on its astuteness in recognizing an undervalued opportunity.”

They add, however, they “are of the view that the initial offers by Corona will encourage additional proposals from others. Shareholders are strongly urged to await the formal responses of the boards of the two companies to the takeover bids from Corona.”

Prior to announcing its takeover offers, Corona acquired some A and B shares of Dickenson and common shares of Kam-Kotia.

Dickenson, with 100% ownership of the A.W. White gold mine near Red Lake, Ont., owns 39.7% of Kam-Kotia, while Kam-Kotia, through its Dickenson B holdings, owns a 39% voting interest (16% equity interest) in Dickenson. (Dickenson’s B shares carry 10 votes each, and its A shares one vote each.)

Also, Dickenson has a 34.7% interest in Wharf Resources (TSE), which owns a 7.6% interest in Kam-Kotia.

Speculation also continues over how Pamour Inc. (TSE), which has an 8.1% interest in Kam-Kotia and, through its Dickenson B holdings, a 9.7% interest in Dickenson, will respond to the Corona offer.

Corona says Pamour has agreed to tender its Dickenson and Kam- Kotia shares. Dickenson, revealing in its press release that Corona purchased 1.54 million A shares of Dickenson from Van Eck Management Corp., says “most of the shares reported by Corona to be committed to its offers appear to be available to the highest bidder.”

Documents involving Pamour and Van Eck filed with the U.S. Securities and Exchange Commission, Dickenson says, “indicate that all of these shares will be tendered into a higher competing bid that is not matched or exceeded by Corona.”

Corona is offering $2.50 per share for Kam-Kotia, which has interests in sodium sulphate operations in Saskatchewan.

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