Eurasia Gold Inc.'s Board recommends shareholders reject offer from Kazakhmys
Wednesday May 30, 3:37 pm ET
TORONTO, May 30 /CNW/ - Eurasia Gold Inc. ("Eurasia" or, the "Company") (TSX: EGX - News) announces that its Board of Directors is unanimously recommending that shareholders reject the unsolicited all-cash offer of $0.85 per Ordinary Share from Kazakhmys Gold Inc. (the "Offeror"), a wholly-owned subsidiary of Kazakhmys PLC ("Kazakhmys") for all outstanding Eurasia Ordinary Shares (the "Offer"). The Board of Directors has concluded that the Offer is inadequate, from a financial point of view, to Eurasia's shareholders. Eurasia's Board of Directors had established an independent director's special Committee (the "Special Committee") comprised of Graham Bevan to review the Offer. The Special Committee had retained Minden Gross LLP and Jennings Capital Inc. ("Jennings"), as its legal and financial advisors, respectively. Jennings has provided a written opinion to the Special Committee and the Board of Directors to the effect that the Offer is inadequate from a financial point of view to the Eurasia shareholders (the "Financial Opinion").
A copy of the Directors' Circular, which sets forth in greater detail the Board of Directors' recommendation and the reasons therefor, is being mailed to all Eurasia shareholders, beginning May 30, 2007. The Board of Directors' recommendation was arrived at after considering a number of factors, including:
- although Jennings was not retained to prepare a formal valuation in
respect of Eurasia, the financial analysis prepared by Jennings for
the purposes of delivering the Fairness Opinion indicated that the
Offer was inadequate, from a financial point of view, to the
shareholders of Eurasia. The Special Committee considered the
assumptions communicated to it by Jennings for the purposes of its
financial analysis to be reasonable or appropriately cautious;
- the Fairness Opinion is to the effect that the consideration to be
paid in respect of the Offer is inadequate, from a financial point of
view, to the Shareholders; and
- the opinion of the Special Committee.
Eurasia's shareholders are advised to read the Director's Circular as it contains important information about the Offer. Copies of same will also be available at www.SEDAR.com under Eurasia's SEDAR profile.
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.
For further information
Baltabek Mukashev, President and CEO, + 7 3272 37 83 06, firstname.lastname@example.org
Eurasia Gold Inc., (416) 504-2899, email@example.com