Aur, which would have spent about $8.3 million to acquire about 65% of the common shares of Louvem, a small gold producer in northwestern Quebec, reports the deal was rejected by Louvem’s major shareholder, St. Genevieve Resources (TSE).
Under the agreement, Aur would have purchased about 8.4 million shares of Louvem held by St. Genevieve and about 2.7 million shares and about 1.3 million share purchase warrants from the Louvem treasury.
According to St. Genevieve, the deal fell through because of “difficulties in materializing the transaction.”
St. Genevieve, in a press release, says the deal was subject to regulatory approval; to St. Genevieve receiving, together with other Louvem shareholders, the dividend in kind of the shares of the wholly- owned subsidiary created by Louvem; to SOQUEM waiving certain of its rights with respect to certain shares of Louvem held by St. Genevieve; to obtaining the necessary approvals of the St. Genevieve, Louvem and Aur boards; to Aur satisfying itself as to the status of the business and affairs of Louvem; and to Aur not being required to make an equivalent follow-up offer to the minority shareholders of Louvem.
Louvem’s main assets are the Chimo gold mine and Manitou mill in the Val d’Or area.
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