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Alamos Files Application with BC Securities Commission to Remove Aurizon's Second Poison Pill

Alamos Gold (NYSE: AGI) announced today that it has filed an application with the British Columbia Securities Commission ("BCSC") seeking an order to immediately remove the second Aurizon poison pill and prevent payment of the improper break fee to Hecla. A hearing at the BCSC has been scheduled for March 15th, 2013.Poison Pill. The Aurizon board has taken the extraordinary step of adopting a second poison pill in an effort to prevent Aurizon shareholders from exercising their rights to accept the Alamos offer (the "Alamos Offer"). The previous poison pill was eliminated on March 4th, 2013. The Aurizon board has had more than enough time to seek a superior offer, and was unsuccessful. Alamos fully expects the second poison pill will be cease traded. Improper Break-Fee. Under Canadian takeover law, a break fee cannot be used to induce an inferior offer. Approximately 30% of the consideration that each Aurizon shareholder will receive will be in the form of Hecla common shares. As such, a proper valuation of the Hecla offer that includes an assessment of the anticipated share price

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Posted-In: News Guidance Contracts Asset Sales Management M&A Global

 

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