UPDATE: Allied Nevada Confirms Received Letter from China Gold Stone, Questions Credibility of Proposal
Allied Nevada Gold Corp. (NYSE: ANV) would like to respond to an announcement from a company named China Gold Stone Mining Development Limited ("China Gold Stone") indicating that it has commenced a tender offer to acquire all of the outstanding shares of the Company (the "Announcement").
Allied Nevada received a letter from China Gold Stone yesterday which included such a proposal (the "Proposal"), however, for a number of reasons, the Company seriously questions the credibility of the Proposal and advises shareholders to review announcements from China Gold Stone with caution. The Company identified the following concerns with China Gold Stone's announcement and the Proposal:
Concerns with China Gold Stone
-- Together with its advisors, Allied Nevada has not been able to find any substantive published information on China Gold Stone and cannot substantiate the credibility of the Proposal.
-- There is no public information available to indicate that China Gold Stone has the financial resources to complete the proposed transaction.
Concerns with the Alleged Proposal
-- Contrary to the Announcement, No Tender Offer has Been Commenced.
-- Pursuant to US federal securities laws, a tender offer commences upon the filing of a Schedule 14D-1 with the Securities and Exchange Commission ("SEC") and no such filing has been made.
-- The Announcement indicates an expiry date of January 24, 2014, which is contrary to U.S. and Canadian securities law.
-- The Proposal is non-binding, and does not provide any certainty or commitment to proceed with a transaction.
-- The Proposal is subject to due diligence and is conditioned upon execution of definitive agreements.
Allied Nevada has contacted the SEC and the Ontario Securities Commission with its concerns about the validity and legality of the announcement and alleged proposal.
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