Canadian miner Aurizon Mines Ltd. (TSE:ARZ) asked shareholders on Wednesday to reject an unsolicited $780 million takeover offer from rival gold miner Alamos Gold Alamos Gold (TSX:AGI), arguing the proposal was inadequate and opportunistic.
Alamos is after Aurizon’s only operating gold mine, Casa Berardi, in northern Quebec. The targeted company also owns other eight properties in Quebec, which include an advanced-stage gold development property of the Heva and Hosco West Extension areas.
The combined entity is expected to have an estimated market value of about $2.6 billion, Alamos said when making the $4.65 per share offer on Jan. 14.
George Brack, chair of the special committee of the Aurizon board, said that offer fails to compensate Aurizon shareholders for the true value of its assets.
“We also believe there is increased geopolitical and development risk associated with Alamos shares,” Brack said in a statement.