Golden Pond Resources will comply with a Quebec Superior Court decision ordering it to trade back all the shares of A-Pri-Or Mining Exploration it had acquired since June 27 in exchange for Golden Pond shares.
The basis for the original stock exchange dates back to March, 1985, when Teck Corp. gave Golden Pond the option to acquire a 50% interest in the Lamaque property at Val d’Or, Que.
Golden Pond subsequently gave A-Pri-Or an option to acquire a 50% interest in Golden Pond’s interests in the Lamaque property. In February, 1986, Golden Pond decided to take over A-Pri-Or and on June 27 made an exchange offer on the basis of one common share of A-Pri-Or for 2.4 shares of Golden Pond.
Having acquired more than 90% of A-Pri-Or’s common shares, Golden Pond planned to acquire the rest of the shares and wind up A-Pri-Or. However, two directors of A-Pri-Or, Nathan Behar and Patrick Gibault, sought to have the offer annulled.
On Nov 3 the court did annul the exchange. Mr Justice Pierre Viau said the exchange offer was misleading since it did not notify A-Pri-Or’s shareholders of the existence and the content of Teck’s report dated June 3, 1986, on the Lamaque property.
Golden Pond says the report was brought to its attention in mid-July and confirmed the existence on the Lamaque property of reserves previously calculated. The company says it did not feel the results of the exploration had any bearing on the exchange offer.
Golden Pond is now seeking financing in order to complete its work commitment on the Lamaque property and secure the 50% acquired interest by Golden Pond and A-Pri-Or.
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