Jaguar shares suffering after CEO's abrupt departure
Brazilian gold miner Jaguar (NYSE:JAG), which last month became the subject of takeover rumours, fell more than 10% on Wednesday, after the sudden resignation of its CEO and president Daniel Titcomb.
Although the company declined to comment on Titcomb’s departure, fund managers quoted by Mining Weekly Online believe that his exit might clear the way for a takeover.
TSX-quoted Jaguar stated that its chairman and two other directors will form a newly-created “office of the chairman” which will fulfill the duties of the CEO on an interim basis.
Last month, news of a $1 billion buying offer from Chinese State-owned Shandong Gold Group made Jaguar Mining shares leap 46%. As Mining.com reported, Jaguar acknowledged that it had received bidding offers over the previous weeks and was exploring alternatives to maximize shareholder value. However, it warned that there was no assurance the Chinese gold producer offer would result in a deal.
Jaguar Mining has four producing gold mines in Brazil, located in a greenstone belt of the state of Minas Gerais. The company has also completed a feasibility study on its Gurupi project in Maranhão state. The study confirmed an estimated 69.8 million tonnes of indicated resources at an average grade of 1.12 grams per tonne containing 2.5 million ounces of gold, and 18.6 million tonnes of inferred resources at an average grade of 1.03 grams per tonne containing 616,630 ounces of gold.