Junior Crown Resources (TSE) has rejected a merger proposal by Battle Mountain Gold (NYSE), claiming it is not in the best interest of its shareholders.
The proposal was offered in mid-April, somewhat to the surprise of Crown’s management. Battle Mountain was to issue shares of its company for Crown shares, which it valued at US$5.25 per share.
News of the proposal sent Crown shares to a high of US$5.25 from the US$4 level on the National Association of Securities Dealers Automated Quotation, before sliding back to about US$4.88. Crown decided, however, that the proposal did not reflect the value of the company.
The two companies are partners in the Crown Jewel gold project in Washington state, where Battle Mountain has a 54% interest.
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