Laramide Resources (LAM-T) has withdrawn its $5.3-million hostile takeover bid for Aquiline Resources (AQI-V), after a court turned down its petition to block Aquiline’s transactions on a Mexican property.
The British Columbia Supreme Court refused Laramide’s petition for an injunction to restrain Vancouver-based Aquiline from proceeding with transactions with Hecla Mining (HL-N), and to block any disposition of assets or shares by Aquiline.
Aquiline says it is “pleased” by the court’s decision.
Laramide’s court petition followed an unsuccessful application to the British Columbia Securities Commission. In that application, Laramide charged Aquiline with “abusive defensive tactics” in the takeover process.
The goal of the bid was control of Aquiline’s two principal gold properties in Mexico: Jojoba in Sonora state and Cieneguita in Chihuahua state.
Laramide’s offer was subject to the condition that the Vancouver company not conduct any transactions “which would adversely affect Aquiline or its properties, or result in the issuance of additional Aquiline shares.” But on Nov. 25 (the same day Laramide announced its bid), Aquiline said it had agreed to give Hecla Mining an exclusive option to purchase 60% of the Jojoba property for cash and spending commitments of US$4.4 million.
It also issued to Hecla 670,000 common shares at $1 per share.
Toronto-based Laramide continues to be Aquiline’s largest single shareholder, with 31% of the company. Laramide acquired 115,700 shares during the bid at an average price of $1.33, including 10,000 shares acquired on Jan. 14 (the day it withdrew its offer) at $1.30 per share.
Be the first to comment on "Laramide withdraws bid for Aquiline Resources"