Tyranex takeover planned by Gunnar

A takeover offer has been made by Gunnar Gold Inc. for all the issued and outstanding shares of Tyranex Gold. Gunnar is offering three Gunnar shares and a $2 debenture for each four shares of Tyranex held. The debentures would bear interest of 10%, payable semi- annually and maturing on April 1, 1991. The debenture is also convertible into Gunnar shares at $1 per share.

The Gunnar board says that if Tyranex management rejects the offer, then Gunnar will proceed with a formal offer to Tyranex shareholders which will close on May 10.

Management of Tyranex moved quickly to reject the Gunnar bid. “The Gunnar Gold offer is totally inadequate and not timely,” Tyranex President Joseph DeFelice says. Both companies are partners on the Tyranite gold project near Shiningtree, Ont.

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