Akrokeri scoffs at takeover bid

The directors of Akrokeri-Ashanti Gold Mines (AAGM-C) are urging their shareholders to resist a takeover bid by a landscaping company.

Akrokeri says the offer of one share of GDL Evergreen for seven Akrokeri shares is “grossly inadequate” and “laughable” because GDL has less than $100,000 in annual profits, minimal assets and no special technology.

But the gardener says the deal would enhance shareholder value because GDL is on a mission to grow by acquiring similar lawn and garden service companies.

Akrokeri produced about 27,000 oz. gold from properties in Ghana in the nine months ended Sept. 30, during which time it earned US$206,500 on revenue of US$8.1 million

However, the junior miner lost US$589,801 in the third quarter as a result of unusually heavy rains that stymied mining efforts.

GDL says Akrokeri shareholders who tender to the bid will receive shares that have a book value of 81 cents each.