Bema’s share swap bid for Arizona Star is latest twist

Vancouver – On the heels of Albert Friedberg’s apparent victory at wrestling control of Arizona Star (AZS-T) away from affiliate, Bema Gold (BGO-T), comes the latest twist in the raging battle for control of the junior. This time it is in the form of a takeover bid by way of a share swap by Bema that values the junior at $283 million.

Bema which already owns 5% of Arizona Star’s common shares is offering to exchange 1.85 of its shares for each share of Arizona Star.

Based on Monday’s share price in Toronto, the offer values Arizona Star at $7.01 per share, which represents a 33% premium over its recent value.

Bema’s President and CEO, Clive Johnson comments in a statement, “We regard this as an opportunity to increase Bema’s interest in the world class Cerro Casale deposit which we believe is on the verge of moving into the development stage.”

Just last week, Albert Friedberg appeared the victor as his efforts at wrestling control of Arizona Star away from its larger affiliate, Bema Gold resulted in an independent board being negotiated for the junior.The compromise deal saw four of Friedberg’s nominees approved ahead of the meeting while two of the company’s existing directors, Mr. Richer and Paul Kostuik would remain on the board.

New on board were Rudi Fronk and James Anthony which Johnson had initially said could jeopardize Arizona Star’s ability to secure financing, owing to his involvement in the now-defunct Greenstone Resources. Friedberg’s remaining nominees were Paul Parisotto and Thomas Dawson.

Although Bema Gold was to continue to manage Arizona Star, it would have a much reduced voice on the board.

The dispute centered around the financing and development of the Cerro Casale copper and gold project in northern Chile, in which Arizona Star has a 25% stake. Bema Gold has a 24% stake, whereas Placer Dome (PDG-T) holds 51%, and thus control of its future. Placer Dome is arranging the financing for what will be one of its cornerstone projects.