Gulf rejects Audrey bid for Asamera Min.

The gap between the valuation placed by Audrey Resources (TSE) and Asamera Minerals’ (TSE) parent Gulf Canada Resources on Asamera’s Canadian and U.S. mineral assets is apparently too wide. Audrey President Guy Hebert, who thinks the approximately $115 million asked by Gulf for Asamera is too high, has ended his attempt to purchase the Asamera assets.

While he was attracted by the cash flow generated by Asamera’s Cannon gold mine in Wenatchee, Wash., Hebert declined to say how much he thinks the company is worth. “Our valuation was a lot lower than $115 million,” said Hebert who believes Audrey’s share price has suffered because investors feared he may agree to pay too much.

Asamera owns 51% of the 160,000 oz.-per-year Cannon mine. It also has a number of exploration projects in Nevada and $20 million in cash. Before Audrey ended the bid last week, shares of the company reached a low for the year of $2.05 on The Toronto Stock Exchange.

Regardless of Audrey’s share price, Hebert said the money was there for an unconditional offer and he went as far as retaining a Seattle, Wash., tax expert as part of a “serious due diligence” process.

“We were so far apart that there was no reason to spend any more time on it,” said Hebert who estimates that the failed acquisition attempt cost his company $300,000.

However, as Minnova (TSE) is financing exploration of the new 1100 lens at Audrey’s Mobrun polymetallic mine near Rouyn- Noranda, Que., Hebert says he can now concentrate on other investment opportunities that are presented to him.