Tyranex Gold fears Rockford takeover

Management at Tyranex Gold (COATS) fears that an application made against them by Rockford Minerals (TSE) in the Supreme Court of Ontario will lead to a takeover by Rockford. The application has been filed against Tyranex, the directors of Tyranex, and John Lee, the investor under a recent private placement of 365,000 common shares. According to Rockford, the court issued an interim order March 5, effective until April 20, preventing Tyranex and its directors from entering into or completing any transactions of shares, options or other securities of Tyranex. The order also restrains Tyranex from distributing any of the proceeds of the private placement, and requires the directors to return 102,000 stock options recently purchased at 20 cents per share.

Meanwhile, Rockford’s parent, Northfield Minerals (ASE) has been busy buying up Tyranex shares, increasing its stake in Tyranex to 41%.

In light of this new voting power, Rockford says it has requested a meeting of Tyranex shareholders, when it will attempt to oust the current board of directors.

Tyranex shareholders recently rejected an attempt by Rockford to take over Tyranex. According to Tyranex President Joseph DeFelice, he and others were required to deliver 657,000 common shares to Rockford under the terms of a lock-up agreement signed in April, 1988. However, because shareholders were reluctant to sell, Rockford was unable to purchase enough shares for a takeover before the agreement expired last December.